California court rules that Lido DAO members may be held liable under partnership law

According to Decrypt, the Federal Court for the Northern District of California has ruled that Lido DAO can be considered a general partnership, and its members are legally responsible for its operational actions. The court rejected Lido's claim that it is a non legal entity and ruled that Lido participants benefit from governance and operation, and cannot evade responsibility due to a decentralized structure. The judgment states that members holding Lido Governance Token (LDO) who make decisions and profit from staking rewards constitute a partnership nature. In addition, although Lido does not directly sell tokens, its promotion and advertising of tokens through cryptocurrency exchanges are considered securities sales and still subject to legal liability. This case has set a new judicial precedent for the legal status and member responsibilities of decentralized autonomous organizations (DAOs). A16z crypto legal advisor Miles Jennings expressed concern about this ruling, stating that it may make any form of DAO participation (such as forum posts) a basis for assuming partnership liability.