US Judge Dismisses Lawsuit Against DeFi Startup, PoolTogether

The DeFi protocol, PoolTogether, has received good news as the 2-year-old lawsuit against it has finally been dismissed by US federal judge Frederic Block.

Joseph Kent, the former head of tech for Senator Elizabeth Warren’s presidential campaign, filed a reformed class action lawsuit against PoolTogther Inc in October 2022, alleging that the protocol was running an illegal lottery and casino in New York and withholding 50% of weekly wins as reserves. However, Judge Block disagreed with Kent’s argument and dismissed the lawsuit on the ground that he lacked standing to sue in federal court and suggested that the matter should appear before a state court.

Us Judge Dismisses Lawsuit Against Defi Startup, Pooltogether

PoolTogether’s co-founder, Leighton Cusack, shared the update on Twitter, expressing his excitement that the court has dismissed the case.

Following the motion dismissal, Kent can pursue his claims in state court, but some notable players in the DeFi space have supported PoolTogether’s legal bills with $1.4 million in funds raised from Pooly NFT sales.

The DeFi community can now breathe a sigh of relief after the ruling.

Defi protocol’s native token POOL is currently hovering at $1.0571. | Source: POOLUSD price chart from TradingView.com
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