Bancor DAO, a decentralized finance platform, faced a ruling after not responding to a 2024 summons. Suing claims suggest investors lost tens of millions due to Bancor’s lack of warning about liquidity problems.

Investors allege that Bancor misrepresented its impermanent loss protection mechanism, which they claim operates at a deficit. Furthermore, they describe Bancor’s token as an unregistered security, leading to a significant legal battle.