A new lawsuit against Pool Together puts the principles of Defi to the test

• A new lawsuit was submitted against Pool Together, a cryptocurrency savings that played the savings accumulated by crypto owners.
• The lawsuit against Pool Together could determine the future of the sector, and if the protocol loses, Defi could be doomed if it takes off.

The decentralized financing is booming. And while much of this is due to the benefit that Defi offers, it also has a lot to do with the uncertainty, ambiguity or the complete lack of guidelines for the sector. However, this could change soon if a new complaint is submitted by damaged investors to test the ethos and the principles on which Defi was built.

The lawsuit is submitted to a New York Federal Supreme Court and is directed against Pool Together, a cryptocurrency protocol that accepts the insoles of its users, borrowed them to other users, similar to how Blockfi and Celsius do.

Although the lending blockfi and Celsius has brought in difficulties with the US regulatory authorities, the latest lawsuit does not deal with them. Rather, it is about the interest that Pool Together pays, or more precisely how they are paid.

Pool Together presents itself as a "no-losers lottery". Essentially, it does everything that Blockfi does, but instead of paying the users their deserved interest, it does lots of lotteries and hands over the collective interest to a few happy users. His founder Leighton Cusack even prefers a different name-" A premium-bound savings account ."

Pool Together is based on Ethereum using open source code. Cusack, the founder, does not exercise authoritarian control over the platform. Instead, users who participate in the provision of liquidity by lending their crypto deserve native platform token, with whom they then vote for the direction that the protocol should take. These governance tokens are also collected when a user never wins in the lottery. They can be sold on stock exchanges like any other crypto and their value shoots up and down, just like Bitcoin or Ethereum.

POOL TOGETHER has been shot down since its foundation and holds hundreds of millions of dollars in the smart contracts and pays over $ 100,000 in prices (or collective interest) per week to happy winners.

And although more investors have accumulated on the platform, not everyone was so impressed, and one of them complains against the protocol.

The defi lawsuit against Pool Together

In the lawsuit, the investor, known as Joseph Kent, argues that Pool Together is a lottery, even though it is charged as a Defi platform, and is prohibited in the state of New York.

kent is a former technical manager in the failed presidential campaign by Elizabeth Warren 2020.

While the lawsuit is aimed at the lottery that takes place every week with Pool Together, which is supposedly illegal, it will also be crucial for what the supervisory authorities think about Defi. On the one hand, it is determined whether a person should be held responsible for the actions of a defi platform. In this case, Cusack says that Pool Together is operated by the token owners.

Carlton Green, lawyer at Crowell & Moring LLP and former money launderer
Source: Crypto-news-flash.com