DeFi in the docks as PoolTogether gets sued
Ethereum DeFi savings and lottery protocol PoolTogether has launched the Pooly NFT collection to help it fight back financially against an impending class action lawsuit. The suit by a former staff member of the notoriously anti-crypto US Senator Elizabeth Warren names the company and its investors. It seeks to determine who is legally responsible when a DeFi protocol is said to have harmed a user.
In October 2021, Joe Kent, a former employee for the fiercely anti-crypto US Senator Elizabeth Warren, issued a class action lawsuit against PoolTogether for violating New York state gambling laws. The suit against PoolTogether is viewed as a test case to change the landscape of DeFi regulation.
Now, PoolTogether launched the Pooly NFT collection and will use proceeds from the sale of the 10,110 NFTs to crowdfund their legal defense. Within two hours of its launch, the collection raised 73 ETH, or around $135,000, with a target goal of…