The decentralized finance (DeFi) community received good news yesterday after the 2-year-long lawsuit against the DeFi protocol PoolTogether finally came to an end. PoolTogether’s co-founder, Leighton Cusack, excitedly shared the update on Twitter, saying the court has dismissed the case.
US federal judge Frederic Block dismissed the lawsuit filed by Joseph Kent against the DeFi Startup in October 2022.
Why Judge Dismissed Lawsuit Against DeFi Startup
The former head of tech for Senator Elizabeth Warren’s presidential campaign, Joseph Kent, filed a reformed class action lawsuit against PoolTogther Inc. The plaintiff sued the firm for severe damages after depositing $12 worth of stablecoins into the protocol.
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He leveraged the New York law that allows buyers of an illegal lottery ticket to file class-action lawsuits against the ticket issuer.
Kent claimed that PoolTogether runs an illegal lottery and casino in New York and may never deliver touted value since it withholds 50% of weekly wins as reserves. He sought compensation of double the amount he spent on PoolTogther’s lottery tickets and twice the amount of attorney fees and legal costs. However, Judge Block disagreed with Kent’s argument.
Notably, the defense…
