CFTC Legally Served Ooki DAO via Website Help Bot, Court Rules

After settling with predecessor bZeroX, the CFTC is chasing Ooki DAO for the same charges: failing to register with the derivatives regulator

article-image

Commodity Futures Trading Commission | Source: Shutterstock

share
  • The DAO is embroiled with the CFTC for allegedly operating a crypto derivatives platform outside of the law
  • Ooki DAO is the successor to bZeroX, which has already settled similar charges with the CFTC

Decentralized autonomous organization Ooki has been dealt another legal blow: A court has ruled the Commodities and Futures Trading Commission (CFTC) effectively served a summons via its online help chat box.

Ooki is a blockchain-powered protocol for borrowing, lending, margin trading and staking. It enables DeFi apps to service traders keen on making leveraged bets, both long and short, across crypto markets. 

It is the successor to bZeroX, which the CFTC simultaneously filed and settled charges with on Sept. 23 in its first ever case against a DAO.

At the same time, the CFTC levied analogous allegations against Ooki, labeling it liable as an “unincorporated association.”

The CFTC found bZeroX had facilitated margined and leveraged retail commodity transactions outside the law between July 2019 and August 2021. Its founders were forced to pay $250,000 for their involvement.

Now, the CFTC is after Ooki. The agency served the revamped protocol late last month, alleging it had been operating for years without registering as a futures commission merchant, but questions had remained over whether the CFTC had sufficiently served its charges.

Ooki’s chat box, like other online assistants, provides automated responses to questions or queries potential customers may have relating to the organization. The CFTC lodged its filings through that portal.

The US Northern District Court of California ruled the CFTC was justified in serving a copy of its court summons and complaint to Ooki in this way, opening up potential ramifications for similar cases in the future.

It’s also unclear exactly who is responsible: the protocol founders, the DAO or its voting members. Both the DAO and its members could be simultaneously held liable for operating the platform outside of what the CFTC deems the law.

Etherscan shows around 1,200 addresses hold Ooki’s native token, which currently trades 92% below its all-time high recorded in December. The DAO itself counts 103 members, according to snapshot.org.

Members of Ooki DAO were also alerted to the CFTC’s summons and complaint through an online forum designated for governance discussions on Sept. 28.

Ooki now has until Oct. 13 to respond to the allegations, otherwise the CFTC could face default judgment, CoinDesk reported.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template (1).jpg

Research

As AI supercharges surveillance, privacy becomes a prerequisite and the winning stack will combine confidentiality with selective disclosure. Zcash’s Tachyon, composable standards on Ethereum/Solana, and compliance-aware pools aim to make private rails the new norm.

article-image

Bain Capital Crypto and Haun Ventures co-led the round as demand grows for Bitcoin-denominated savings and annuities

by Blockworks /
article-image

NYSE owner’s investment values the prediction market at $8–9 billion, signaling Wall Street’s entry into event-based trading

by Blockworks /
article-image

Pineapple begins deploying its $100 million Injective Digital Asset Treasury, staking INJ to earn yield and fund onchain mortgage ambitions

by Blockworks /
article-image

Staking levels in the ether funds will depend on protocol unstaking queue times and anticipated redemption activity, firm says

article-image

ETF inflows, miner strength, and tightening supply drive Bitcoin past its prior peak amid renewed demand for scarce assets

by Blockworks /
article-image

The Guidestar team, led by Alex Nezlobin, will join Uniswap Labs to enhance automated market maker design and smart order routing

by Blockworks /