Victims of the bZx DeFi Hack Try to Sue DAO in Court

Victims of the bZx DeFi platform hack are fighting to get their funds back and are trying to hold the DAO accountable. The lawsuit, filed Monday in the Southern District of California, lists the names of 14 plaintiffs who allege they lost funds ranging from $800 to $450,000. Together, as stated in the lawsuit, the plaintiffs lost about $1.6 mln in the November hack, in which about $55 mln in cryptocurrency was stolen.

The plaintiffs allege that the theft was only possible because the protocol did not take security measures that its operators knew were sufficiently necessary to protect the funds. According to the complaint, the defendants include bZx protocol co-founders Kyle Kistner and Tom Bean, bZx investors Hashed International and AGE Crypto, and bZeroX, which created the protocol and controlled it until August 2021. It also names bZx DAO, Ookie DAO and LeverageBox, the company that operated the Fulcrum trading platform, as defendants.

In addition to the statement on its website in December about preparing to launch the bZx rollout on Binance Smart Chain and Polygon with enhanced security measures, bZx DAO shared details of its compensation plan for the victims of the November attack. However, the plaintiffs call the plan "woefully inadequate" and full compensation will take thousands of years.

Image: ABC News