3. Oktober 2023

DeFi Platform PoolTogether Wins Lawsuit Dismissal: NFTs Get Use Cases

• A lawsuit against the decentralized finance (DeFi) platform PoolTogether was dismissed by a federal district court in the United States.
• The court ruled that Joseph Kent lacked the legal capacity to sue since he “suffered no concrete harm at the hands of the defendants”.
• Judge Frederic Block has said that Kent’s alleged injury must be comparable to the ones for which he seeks compensation and Kent is “free to pursue his claims in state court”.

Court Dismisses Lawsuit Against DeFi Platform PoolTogether

A lawsuit filed against the decentralized finance (DeFi) platform PoolTogether in the United States was recently dismissed by a federal district court in the United States. The judge, Frederic Block, remarked that although he understands public worries about the company, filing an action in federal court is not “an appropriate way to address them”.

Lack of Legal Capacity

The court ruled that Joseph Kent lacks legal capacity to sue since he “suffered no concrete harm at the hands of the defendants”. According to Judge Block, Kent’s alleged injury must be comparable to those for which he seeks compensation. Therefore, due to this discrepancy between what was alleged and what occurred, charges were dropped against PoolTogether.

PoolTogether Fundraising

In 2022, PoolTogether raised 769 Ether, or almost $1.4 million through their sale of PoolyNFTs – non-fungible tokens (NFTs). This caused elation from many users within their community who saw it as having use cases outside of its intended purpose as a DeFi platform.

Claim Pursuit

Kent is now free to pursue his claims in a state court with any lingering questions being answered by New York Court of Appeals should they arise.

Conclusion

With this decision from Judge Block coming after much anticipation from members of both sides around this case, it appears that justice has been served regarding this particular claim made against PoolTogether – with all parties now able to move on and continue development on their respective projects going forward without interruption or distraction from any additional legal proceedings related to this matter.