The California court ruled that Lido DAO members can be held liable under partnership law

ChainCatcher news, a federal court judge ruled that Lido DAO can be considered a general partnership under state law. The court dismissed Lido's claim that it is not a legal entity, classifying it as a general partnership and setting a precedent for how profit-oriented DAOs should be treated.

According to court documents submitted to the U.S. District Court for the Northern District of California, the court also ruled that identifiable participants are managing the operations of the DAO, and therefore cannot evade responsibility through its decentralized structure.