A U.S. court in California has ruled that bZx protocol and governance token-holding members of its DAO were negligent and liable for losses resulting from a hack that drained its treasury. While the court dismissed some claims, such as personal liability for breaching the fiduciary duty of the founders, it allowed negligence claims to proceed, creating a landmark ruling in the liability of governance token holders in DAOs. This decision implies that DAO members might be held liable for negligence, potentially undermining the decentralized nature of DAOs while providing a defence for founders accused of wrongdoing. The case stems from the $55 million hack of DeFi lender bZx in 2021. The bZx DAO passed a governance motion to compensate token holders 1:1 for their lost BZRX tokens and a debt repayment plan, but the time horizon of this repayment plan was unacceptable for holders, leading to the class action suit. The bZx DAO was later rebranded to Ooki DAO, which many have called its successor. (Coindesk)