Lawsuit against DeFi platform PoolTogether dismissed by US federal court.

A lawsuit against decentralized finance (DeFi) platform PoolTogether has been dismissed by a judge in the United States. The federal court system was deemed an inappropriate place to address concerns against the startup, according to the ruling. U.S. District Court Judge Frederic Block stated that the plaintiff, Joseph Kent, lacked standing to pursue a lawsuit because he hadn’t suffered any concrete harm at the hands of the defendants. The lawsuit, filed by Kent in October 2021, alleged that the DeFi startup violated gambling laws in New York state. However, the judge said that the injury Kent claimed to have suffered must be similar to the injuries he hoped to find a remedy for in the court, which was not the case. Despite the decision, the judge said that Kent is free to pursue his claims in state court, and ancillary issues raised in the dismissal motions that remain unanswered should be resolved by the New York Court of Appeals.

Community members rejoiced over the decision, with some saying that their nonfungible token (NFT) now has utility and others expressing support. In 2022, the DeFi startup raised 769 Ether (ETH), around $1.4 million at the time, by selling PoolyNFTs. The funds were used to fight against the lawsuit, which some community members believed to be an attack on the DeFi sector as a whole.

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