A California judge has ruled that members of decentralized autonomous organizations (DAOs) can be held liable for the actions of other members under state partnership laws. On November 18, U.S. District Judge Vince Chhabria determined that the governing bodies of Lido DAO qualify as partners under California’s general partnership laws, meaning members cannot evade liability for the organization's actions. This ruling follows a lawsuit filed by Andrew Samuels, who claimed that tokens issued by Lido DAO were unregistered securities. The court found that Lido DAO could not claim immunity and that its identified partners, which include prominent institutional investors, could also be held liable. The judge dismissed the case against one investor, Robot Ventures, due to a lack of evidence of its partnership status. Legal experts have noted that this ruling poses a significant challenge to decentralized governance, suggesting that even minor participation in a DAO could expose members to liability for others' actions.

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