According to Cointelegraph, a decentralized autonomous organization (DAO) is pursuing legal action against its founding team following the dissolution of its governing body and distribution of most of its assets to token holders. On November 2, the Aragon team announced the dissolution of the Aragon Association and the deployment of the organization's treasury, allowing ANT token holders to redeem Ether (ETH) in exchange for their tokens. This move returned approximately $155 million in digital assets to stakeholders. However, the Aragon team dissolved the governing body and shut down the ANT Token without consulting the DAO, leading to dissatisfaction among a faction of its community.
On November 21, the DAO voted to allocate $300,000 in USD Coin (USDC) to Patagon Management LLC, a Delaware-based company owned by Diogenes Casares, to initiate legal action against Aragon. Patagon will lead negotiations and the lawsuit against the Aragon team. The proposal aims to ensure that a reasonable amount of dead token funds are returned to those who have redeemed pro-rata and not taken away from former tokenholders. The approved proposal also allows Patagon to maintain confidentiality regarding the legal process and decide on a legal strategy. However, all of Patagon's financial transactions related to the case will be publicly reported, and the funds will be stored in a separate wallet address and bank account from the company's business accounts.