DeFi Giant Manufacturer Wins as US Court Drops $28 Million Lawsuit Crypto Investors Brought Against It

A class-action lawsuit against Maker, a DeFi cryptocurrency lender, was dismissed by a US judge. The case claimed that Maker misrepresented the dangers investors faced, which resulted in catastrophic losses of collateral on MakerDAO back in 2020.

The "Black Thursday" case has been dropped, according to a court document submitted on Wednesday, since the Maker Foundation, which developed the Maker protocol and produced the first batch of tokens, has been dissolved and is no longer "a valid defendant."

The Maker Growth Foundation, established in 2018, stated that starting in 2021, it will completely hand over management to MakerDAO, a decentralized autonomous organization (DAO). The shift was always planned as a method for the protocol to fully embrace decentralization.

A further argument made by the court was that the plaintiff "has failed to disclose facts adequate to substantiate any of his requests for relief." This was the second time the complaint had been altered.

According to reports, investors sued the Maker Foundation in a class-action lawsuit in March 2020, alleging that the business had misrepresented the dangers that ecosystem investors faced.