DeFi Community Helps PoolTogether to Collect $1,4 Million for Lawsuit Fees

DeFi Community Helps PoolTogether to Collect $1,4 Million for Lawsuit Fees

06.06.2022 08:43
by Aleksandar Đurić
2 min read

Ten days after the start of its fundraising campaign, the decentralized finance (DeFi) lottery platform PoolTogether has collected the full amount of money necessary to cover the legal fees in the lawsuit filed against PoolTogether.

The class action lawsuit is led by Joseph Kent, the technology lead for Senator Elizabeth Warren’s presidential campaign of 2020. Kent is claiming that PoolTogether is an illegally-run lottery.

769 Ether (ETH) was collected in total (amounting to $1,4 million) through the sale of non-fungible tokens (NFTs) to members of the DeFi community. There are three tiers on offer, priced at 0.1 ETH, 1 ETH and 75 ETH each. The campaign will run for another 16 days. If PoolTogether sells all available NTFs, the lottery will collect the total sum of 1,076 ETH, which amounts to $2 million.

This is not the first time that Kent had expressed anti-crypto opinions. Among other things, he is concerned about the environmental damage. He also has issues with the many scamming opportunities, and the high gas fees on Ethereum.

As for PoolTogether, it is a so-called “no-loss lottery”. By using the capital amassed by ticket-buyers and liquidity providers, PoolTogether makes interest through DeFi lending protocols. Several people participating in each round of lottery will earn a substantial share of the yield. All others will get a full-refund from this risk-free lottery.

Author

  • An experienced journalist working in the film and video-game industries for many years. An enthusiast busy with learning new things about the world of crypto every day. Majored in English Language and Literature. Has a shrine in his apartment dedicated to Hidetaka Miyazaki.

Trending news

Subscribe and be in touch
Click here