A Texas federal judge has issued a default judgment against Bancor DAO, the decentralized finance platform, after it failed to respond to a summons posted in January 2024. Judge Robert Pitman stated that Bancor DAO did not defend itself, leading to the judgment entered on March 13. The class action lawsuit involves investors claiming losses exceeding millions due to the platform's failure to disclose liquidity issues during a 2022 withdrawal spike. Plaintiffs allege that Bancor misrepresented its impermanent loss protection mechanism and that its token is an unregistered security. They argue that Bancor operates as an unincorporated general partnership of vBNT tokenholders. The case was reopened in December after an initial dismissal related to jurisdictional concerns. Bancor has seen a significant decline in total value locked since May 2021, and the odds of recovery for the plaintiffs remain uncertain amid the unregistered status of the DeFi platform.

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