District Judge Larry Burns has ruled that bZx DAO is a general partnership under California law, meaning that any member of the organization is liable for loss of users resulting from a hack.
The defense argued that this would expand on the longstanding principles of the law, since token holders have never agreed to share profits and losses with the organization.
However, the plaintiffs pointed to the ability of asset holders to vote on the distribution of DAO assets in the same way that shareholders of a firm can initiate the payment of dividends.
Ultimately, the court sided with the plaintiffs, affirming that bZx DAO members are liable for user losses.
