Fintech Enforcement In Light of the Ooki DAO Lawsuit with Bill Kane and Zack Golda

In this episode of The Legit Ledger, Sheppard Mullin attorneys Bill Kane and Zack Golda join host Yasamin Parsafar to discuss the CFTC's recent lawsuit against the Ooki DAO for allegedly offering leveraged and margined retail commodity transactions in digital assets in violation of the Commodity Exchange Act.

1. Why did the Commodity Futures Trading Commission ("CFTC") file this lawsuit?
2. How has the CFTC defined the class of Decentralized Autonomous Organization ("DAO") members in this case?
3. Does the conduct alleged by the CFTC constitute a violation of the Commodity Exchange Act ("CEA")?
4. Should the fact that this involves a DAO change the analysis at all?
5. What issues does this case raise concerning litigation procedures?
6. Do you see any meaningful difference between what the Securities & Exchange Commission has been doing recently in relation to "regulation by enforcement" and what the CFTC has done in this case?

Yasamin Parsafar is a partner with the Intellectual Property Practice Group in Sheppard Mullin's San Francisco office, where she serves as co-leader of the firm's Blockchain & Fintech team. Her practice focuses on protecting her clients' intellectual property rights through counseling, prosecution, enforcement, and litigation. Yasamin leverages her litigation experience to strengthen and protect her clients' intellectual property, manage risks, and position businesses to succeed in the event of a dispute. She frequently advises and protects brands venturing into web3 on various issues related to non-fungible tokens, metaverses, games, online marketplaces, and other platforms.

As a partner in Sheppard Mullin's Chicago litigation group, Bill Kane's national litigation practice focuses on complex commercial litigation and advice across industry sectors in corporate governance, director and officer issues, shareholder rights, media/entertainment and regulatory issues. He has more than 30 years of experience representing clients before trial and appellate courts, administrative agencies, private mediations and arbitrations. Bill previously served as an Assistant Attorney General in the Illinois Attorney General's office where he represented the legislative, executive and judicial branches of state government.

He actively represents clients in contract disputes, business tort claims, antitrust and consumer protection issues. Bill also has experience in Special Purpose Acquisition Company or SPAC litigation. In addition to his experience in SPAC-related litigation, he also represents clients in contract disputes, business tort claims, antitrust and consumer protection issues. Bill's practice includes representing private equity investors, along with directors and officers in partnership and shareholder litigation.

Zack Golda is an associate in Sheppard Mullin's Business Trial Practice Group in the Orange County, California office, where he primarily focuses on general business litigation, including regulatory challenges, breach of contract, business torts, blockchain, sports and other high-stakes business litigation matters. As a member of the firm's Blockchain Industry Group, Zack has litigated cases involving blockchain, privacy and regulatory issues. He has also drafted several articles about regulatory advances in the cryptocurrency space, covering topics such as decentralized autonomous organizations (DAOs) and SEC and CFTC regulation of the blockchain industry.

Zack also is a member of the California Regulatory Practice Group, where he advises clients on communicating with regulators, analyzing and responding to agency proposed rulemakings and, where necessary, litigating constitutional, statutory, and procedural challenges to newly passed regulations.

Bill Kane

Zack Golda

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