$ 28 Million Lawsuit Against Maker Crypto Platform Goes To Arbitration
The court granted the Maker Ecosystem Development Fund’s motion to transfer the ongoing proceedings to arbitration.
In April, MakerDAO user Peter Johnson sued the Maker Foundation, the Maker Ecosystem Growth Foundation, and the Dai Foundation, accusing them of providing false information to investors. The defendants argued that their investment proposal is safer compared to other assets, as the DAI stablecoin has excess collateral.
The plaintiff said he and other investors suffered six-figure losses when the Ethereum price collapsed on March 12, causing massive liquidations of users’ secured debt positions. Johnson says the project guaranteed a maximum loss of 13%. The white paper Maker states that this value is not fixed and can change depending on the internal conditions of the ecosystem..
Maker noted that by going to court, Johnson violated the terms of the arbitration agreement he entered into when he joined the service in 2018. In accordance with it, conflicts with clients should be resolved according to the rules established by the American Arbitration Association..
The plaintiff expects up to 1,000 participants to join the case, claiming total damages of $ 8.325 million and requesting $ 20 million in additional compensation. He himself claims to have lost over $ 200,000.
Earlier, MakerDAO decided not to compensate user losses due to the market crash in March.
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