{"id":120780,"date":"2023-07-11T10:38:56","date_gmt":"2023-07-11T10:38:56","guid":{"rendered":"https:\/\/dripp.zone\/news\/fei-protocol-discord-was-not-seized-amid-class-action-lawsuit-says-lawyer-crypto-news\/"},"modified":"2023-07-11T10:38:59","modified_gmt":"2023-07-11T10:38:59","slug":"fei-protocol-discord-was-not-seized-amid-class-action-lawsuit-says-lawyer-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/fei-protocol-discord-was-not-seized-amid-class-action-lawsuit-says-lawyer-crypto-news\/","title":{"rendered":"Fei Protocol Discord Was Not &#8216;Seized&#8217; Amid Class-Action Lawsuit, Says Lawyer\n &#8211; Crypto News"},"content":{"rendered":"<div style=\"position:relative;overflow:visible;font-size:1.2em;line-height:1.58\">\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:sm:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><span style=\"font-weight:400\">An attorney representing the plaintiffs in an ongoing class action lawsuit against DeFi project Fei Labs said that the platform&#8217;s Discord server was not seized by authorities last week as previously reported.  Instead, the widely covered notice was intended to spread the word to investors negatively affected by its shaky launch event two years ago.<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:sm:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><span style=\"font-weight:400\">On Friday, Crypto Twitter shared <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/TraversaJulian\/status\/1677380147874529282?s=20\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">screenshots<\/span><\/a><span style=\"font-weight:400\">  of a legal notice posted on Fei&#8217;s Discord server that was issued by the Superior Court of San Francisco.  The notice, referencing a legal NFT airdropped into the wallets of investors, informed users that they can apply to get a slice out of a multimillion-dollar <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.feitribesecuritiessettlement.com\/\" class=\"sc-adb616fe-0 ePvUAp\">preliminary settlement <\/a>reached in the case. <\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:sm:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><span style=\"font-weight:400\">Some observers characterized the move as a seizure of the Discord server, but a plaintiffs&#8217; lawyer told <\/span><i><span style=\"font-weight:400\">decrypt <\/span><\/i><span style=\"font-weight:400\">that this was not the case.  Instead, they said Fei Labs worked with a settlement administrator to post the notice.<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:sm:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><span style=\"font-weight:400\">Fei Labs did not reply to <\/span><i><span style=\"font-weight:400\">Decrypt&#8217;s <\/span><\/i><span style=\"font-weight:400\">request for comment.<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:sm:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><span style=\"font-weight:400\">In a message published on their <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/fei.money\/\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">website<\/span><\/a><span style=\"font-weight:400\">Fei Labs said that its Tribe DAO and Fei Protocol are no longer under development, and urged users to withdraw any funds they held in Tribe DAO-related contracts.<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:sm:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><span style=\"font-weight:400\">The settlement notice is the latest episode in a saga that began two years ago when Fei Labs first issued its namesake algorithmic stablecoin Fei and its governance token Hunt in April 2021. <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/resources\/what-are-algorithmic-stablecoins\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">algorithmic stablecoin<\/span><\/a><span style=\"font-weight:400\">  uses incentives to keep the coin pegged to the value of a fiat currency, in Fei&#8217;s case, the US dollar. <\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:sm:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><span style=\"font-weight:400\">Fei&#8217;s token was unique due to its use of software that penalized anyone trying to sell it below its peg, while rewarding those who bought it below the peg.  A bug emerged during the launch that left the tokens beneath their peg, but the developers still managed to raise nearly <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/\/investment-round-fei-labs-raise-almost-1-3-billion\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">$1.3 billion<\/span><\/a><span style=\"font-weight:400\">  From Fei and Tribe. <\/span><\/p>\n<p><span style=\"font-weight:400\"> <\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:sm:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><span style=\"font-weight:400\">In a <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.feitribesecuritiessettlement.com\/2022-04-01%20Plaintiff's%20Complaint%20for%20Violation%20of%20the%20Securities%20Act%20of%201933.pdf\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">class-action complaint <\/span><\/a><span style=\"font-weight:400\">filed on April 1, 2022 in a San Francisco court, Fei and four of its developers were accused of selling unregistered securities via these tokens. <\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:sm:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><span style=\"font-weight:400\">Ultimately, the two sides agreed to a <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.feitribesecuritiessettlement.com\/2023-05-30%20(Amended)%20Stipulation%20of%20Settlement.pdf\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">preliminary settlement<\/span><\/a><span style=\"font-weight:400\">  in May 2023 that meant Fei Labs was not required to admit to any wrongdoing.  A nearly $18 million dollar fund was created to cover both notices and fees incurred during the litigation, with all claimants having until October 1 to submit a notice for compensation.<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:sm:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><span style=\"font-weight:400\">A final settlement hearing is also scheduled to take place on October 27 to consider whether to approve the settlement.<\/span><\/p>\n<div class=\"my-4 border-b border-decryptGridline\">\n<div class=\"text-left p-8 md:py-12 md:px-12 max-w-prose relative\"><span class=\"border-t-4 border-l-4 w-4 h-4 md:border-t-[6px] md:border-l-[6px] md:w-6 md:h-6 border-decryptPurple dark:border-decryptNeon gg-dark:border-cc-pink-2 absolute top-4 left-4 md:top-6 md:left-6\"\/><span class=\"border-t-4 border-l-4 w-4 h-4 md:border-t-[6px] md:border-l-[6px] md:w-6 md:h-6 border-decryptPurple dark:border-decryptNeon gg-dark:border-cc-pink-2 absolute rotate-180 bottom-4 right-4 md:bottom-6 md:right-6\"\/><\/p>\n<h3 class=\"font-akzidenz-grotesk font-bold text-xl md:text-3xl mb-6 md:text-center gg-dark:text-white\">Stay on top of crypto news, get daily updates in your inbox.<\/h3>\n<\/div>\n<\/div>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>An attorney representing the plaintiffs in an ongoing class action lawsuit against DeFi project Fei Labs said that the platform&#8217;s Discord server was not seized by authorities last week as previously reported. Instead, the widely covered notice was intended to spread the word to investors negatively affected by its shaky launch event two years ago. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":120781,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-120780","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/120780","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=120780"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/120780\/revisions"}],"predecessor-version":[{"id":120782,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/120780\/revisions\/120782"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/120781"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=120780"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=120780"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=120780"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}