Fraud expert Benjamin Bathgate says that following the mangomarkets exploit, DAOs may need to consider different legal and governing structures. _franvela reports
with the Mango Markets DAO. However, Bathgate called the settlement “ill-advised” on the DAO’s part and one that was “doomed to fail from the beginning.” Eisenberg currently faces commodities fraud, commodities market manipulation and wire fraud charges.
Bathgate said the case against Eisenberg is also different and “unusual to some extent” because Eisenberg’s name was made public. In other exploits, a supposed bad actor isn’t as easy to find. However, because Eisenberg outed himself, “it does raise the question: If you’re doxxed are you going to make these arguments now in the court of law?’that governs the Mango Market DAO, is seeking to claw back the remaining $47 million, arguing that the deal was made under duress.
“There's going to be a reality check because these kinds of settlements are not likely to be enforceable by the courts,” Bathgate said. He added that it may prompt wider conversations about the structures of DAOs, including whether “some form of LLC [or] limited liability structure” will be implemented.
Though Bathgate doesn't think this lawsuit will be successful, having an LLC at least gives a DAO the ability to bring a claim to court. “That's going to be one of the interesting approaches. Are we going to see more of that and that legal construct so that they can act on its [DAOs] behalf and take steps on its behalf?” Bathgate said.questions for DAO community members“What constitutes agreement by the users?” Bathgate asked.
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