In this episode of The Legit Ledger, Sheppard Mullin attorneys Bill Kane and Zack Golda join host Yasamin Parsafar to discuss the CFTC’s recent lawsuit against Ooki DAO for allegedly offering leveraged and margined commodity transactions in digital assets in violation of the Commodity Exchange Act.
What we discuss in this episode:
- Why did the CFTC file this lawsuit?
- How has the CFTC defined the class of DAO members in this case?
- Does the conduct alleged by the CFTC constitute a violation of the CEA?
- Should it change the analysis at all that this involves a DAO?
- What questions does this case raise regarding litigation procedures?
- Do you see any meaningful difference between what the SEC has done recently regarding “regulation by enforcement” and what the CFTC has done in this case?
About Yasamin Parsafar
Yasamin Parsafar is a partner with the Intellectual Property Practice Group in Sheppard Mullin’s San Francisco office, where she serves as co-leader of the firm’s Blockchain & Fintech team. Her practice focuses on protecting clients’ intellectual property rights through counsel, prosecution, enforcement and litigation. Yasamin leverages his legal experience to strengthen and protect clients’ intellectual property rights, manage risks and position businesses for success in the event of a dispute. She frequently advises and protects brands venturing into the web3 on various issues related to non-fungible tokens, metaverses, games, online marketplaces and other platforms.
About Bill Kane
As a partner in Sheppard Mullin’s litigation group in Chicago, Bill Kane’s national litigation practice focuses on complex commercial litigation and advice across industry sectors in corporate governance, director and executive matters, shareholder rights, media/entertainment and regulatory matters. He has more than 30 years of experience representing clients before trial and appellate courts, administrative bodies, private mediation and arbitration. Bill previously served as an Assistant Attorney General in the Illinois Attorney General’s office where he represented the legislative, executive and judicial branches of state government.
He actively represents clients in contract disputes, business injury claims, antitrust and consumer protection matters. Bill also has experience in special purpose vehicle or SPAC litigation. In addition to his experience in SPAC-related litigation, he also represents clients in contract disputes, business injury claims, antitrust and consumer protection matters. Bill’s practice includes representing private equity investors, along with directors and executives in partnership and shareholder litigation.
About Zack Golda
Zack Golda is an associate in Sheppard Mullins’ Business Trial Practice Group in the Orange County, California office, where he focuses primarily on general business litigation, including regulatory challenges, breach of contract, breach of business, blockchain, sports and other high-stakes litigation. matters. As a member of the firm’s Blockchain Industry Group, Zack has litigated cases involving blockchain, privacy and regulatory issues. He has also authored several articles on regulatory advancements in the cryptocurrency space, covering topics such as Decentralized Autonomous Organizations (DAOs) and SEC and CFTC regulation of the blockchain industry.
Zack is also a member of the California Regulatory Practice Group, where he advises clients on communicating with regulators, analyzing and responding to the agency’s proposed rulemakings and, where necessary, litigating constitutional, statutory and procedural challenges to newly enacted regulations.
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