The San Francisco Superior Court has reportedly taken control of Fei’s Discord server in a class action settlement. The Fei Protocol is a decentralized stablecoin project, where the algorithm’s original stablecoin, FEI, is backed by a variety of currencies, including DAI, ethereum (ETH), and USDC.
Grab Discord and Legal Notice NFTs
Proposed settlement in a class action lawsuit In return for the Fei protocol, it will provide $17.8 million in compensation to all users who purchased FEI or TRIBE tokens during the protocol’s genesis event, which was held from March 31 to April 3, 2021.
The lawsuit alleges that the sale of FEI and TRIBE tokens made during the Genesis event violated the Securities Act of 1933, which constitutes the sale of unregistered securities. The plaintiff, Jonathan Shomroni, says that those who purchased these tokens directly from the Fei Protocol during the Genesis event are subject to compensation.
What sets this settlement apart is the court’s permission for legal notice in the form of NFTs, which will be airdropped to related parties and minted at OpenSea, which is one of the NFT marketplaces. The approval of NFTs in the class action settlement highlights the growing potential for integrating blockchain technology into the legal system and sets a precedent for applying NFTs and blockchain in future legal proceedings.
While some skeptics believe Fei Protocol’s control of Discord is a move by bad actors, further investigation indicates that the lawsuit is a legitimate legal process and not a scam or hacked Discord status.
There was no clear evidence of web3 phishing or consent abuse within the Discord server. Alternatively, the court may collect physical addresses from the plaintiffs.
VIE Class Action Settlement Details
Before the settlement can be finalized and payments made, the court will hold a hearing on October 27, 2023 to decide whether or not to agree to the settlement.
Attorneys representing the class members also claimed approximately $4.5 million in attorneys’ fees, costs of investigating the facts, prosecuting the case, and negotiating the settlement.
The plaintiff who filed the claims on behalf of the class members requested a service award of up to $10,000. If approved, fees, costs and service awards will constitute approximately 25% of the settlement fund. However, the defendants denied any wrongdoing, and the court has so far found no evidence of wrongdoing to approve the settlement.