The organization attempted to avoid liability by claiming it was not a legal entity. However, the court determined that Lido DAO operates as a general partnership. The Judge wrote:
“The Lido DAO general partnership [may be] narrower (for instance, including only the founders) or broader (for instance, including everyone who has voted on a governance proposal or who holds any LDO).”
Under California law, a partnership is formed when two or more parties work together for profit, regardless of intent to create a formal partnership.