A Texas federal judge has issued a default judgment against Bancor DAO after the organization failed to respond to an online summons. Judge Robert Pitman made the ruling after Bancor, which operates the decentralized finance platform Bancor, neglected to defend itself when a summons was posted on its forum in January 2024. The default relates to a class action lawsuit from investors seeking compensation for losses amounting to tens of millions of dollars due to Bancor's lack of warnings about liquidity issues during a withdrawal spike in 2022. Plaintiffs allege Bancor misled them regarding its impermanent loss protection mechanism for liquidity providers and characterized its token as an unregistered security. Previous attempts to dismiss the case were made on the basis that the DAO developers were not based in the U.S., but the case was reopened in December 2024. The plaintiffs argued that Bancor DAO operates without any formal registration or physical presence, complicating its legal accountability.

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