Decentralized autonomous organizations (DAOs) will likely consider implementing legal structures following the exploit of Solana-based decentralized finance (DeFi) lending protocol Mango Markets, according to Benjamin Bathgate, a partner at Canadian-based law firm McMillan LLP.

Bathgate, co-chair of the fraud group at McMillan for over 15 years, said “a whole bunch of issues are wrapped” into whether DAOs can make legal settlements. That’s partly because a majority don't have legal structures in place, he said.

“In many situations, the DAO is just a collection of users,” Bathgate, told CoinDesk TV’s “First Mover” on Friday. “It’s a community of users, perhaps with a core contributor doing the coding.”