PoolTogether: NFT Sales to Fund Litigation Reaches 470 ETH

Updated on Jul 27, 2024 at 3:11 pm UTC by · 2 mins read

PoolTogether has described the case as lacking merit and a test of the core values of DeFi communities.

In less than a week of launching NFTs to fund its ongoing litigation, PoolTogether has sold NFT assets worth 470 ETH. The DeFi platform set out to raise 769 ETH to fund the class action suit brought against it. With about 25 days still to go, the NFT sales have exceeded 60% of the target amount.

If all NFTs are sold, the platform will have raised 1,076 ETH or $2.2 million. According to the minting website, funds from the sales will help cover the legal expenses of the case. Any unused funds at the end of the case will be converted for business purposes.

The Class Action Suit against PoolTogether and NFT Sales

Founded in 2019, PoolTogether allows users to deposit their crypto assets into the protocol. In return, the users get a ticket and have a chance to win a prize if their ticket is chosen.

The putative action suit against the company was filed by Joseph Kent, former technology lead for Senator Elizabeth Warren’s 2020 presidential campaign. Kent deposited Roughly $12 in USDC into the protocol. Afterward, he filed a motion against the project, Leighton Cusack and some other investors in the protocol.

According to Kent, the protocol violates New York’s prohibition against illegal lotteries. The amended complaint further alleges that the project “may never offer a positive expected value’ because 50% of the weekly prize is kept as reserve”. Kent is seeking compensation that far exceeds the amount he invested and the possible legal fees he can incur from the litigation.

In their defense, PoolTogether has stated the protocol runs on Ethereum and is not owned by anyone. The firm also noted, in its defense, that there is a clear distinction between the protocol and the company.

Why the Community Stepped Up for the NFT Sales

PoolTogether has described the case as lacking merit and a test of the core values of DeFi communities. The overwhelming support for its NFT sales underlines the fact that the community believes the same. A member of the community identified as Richard Liriano noted that a win, in this case, was a win for every DeFi protocol.

Also, Kent may have let off his aversion to crypto-assets stating that it was accelerating climate change and allowing fraudsters to exploit the financial system.

Share:

Related Articles

Ethereum Price Falls Below $1,800 Despite Ending Its Spot ETF Outflow Streak

By March 31st, 2025

Ethereum’s bearish sentiment has strengthened while the ETH-based investment products in the US ended their four-week outflow streak.

Ethereum (ETH) Dips Despite Pectra Test, Impressive Whale Buying Spree

By March 27th, 2025

Ethereum finally deployed its Pectra upgrade on the Hoodi testnet. However, ETH price still gained downward momentum.

Whales Buy Almost $1B in Ethereum in Past Week, ETH Reclaims $2K

By March 24th, 2025

Ethereum surged to $2,065 with a 9% weekly gain as whales accumulated $1 billion worth of cryptocurrency in the past week.

Exit mobile version