Former LDO holders file class action lawsuit against LidoDAO over crypto losses

According to a lawsuit filed on December 17 in the US District Court in San Francisco, a holder of LDO tokens has launched a class action against Lido. The lawsuit alleges that Lido's LDO token is an unregistered security and that the Lido Decentralized Autonomous Organization (LidoDAO) is responsible for the losses suffered by the plaintiff due to the token's price drop. The document states that the lawsuit was filed by Andrew Seymore, who resides in Solano County, California.

Defendants include LidoDAO, as well as venture capital firms Paradigm, AH Capital Management, Dragonfly Digital Management, and investment management firm Robot Ventures. The document claims that 64% of LDO tokens were "specifically allocated to founders and early investors like the defendants," and therefore, "ordinary investors like the plaintiff cannot exert any meaningful influence on governance issues."