Here are some recent developments in the crypto world.
A California court has ruled in favour of the plaintiffs who claimed that the bZx Protocol (BZRX), an Ethereum-based decentralised finance (DeFi) platform, and its Decentralised Autonomous Organisation (DAO) members were negligent and responsible for their financial losses.
The court ruled that BZRX and its DAO members, who controlled the governance tokens, were accountable for the losses brought on by a data breach due to their negligence, crypto news portal CoinDesk reported on Wednesday.
BZRX allows users to create applications for lenders, borrowers, and traders.
The lawsuit was filed in July 2022 against bZx, its creators, and software developers Leveragebox LLC and Hashed Labs LLC.
While the court has rejected some of the claims, such as the founders’ personal liability for breaching fiduciary duty, it allowed the negligence charge to go forward, setting a precedent for DAO governance token holders’ liability.
Disney Lays Off Metaverse Team
Disney has laid off the staff members in its Metaverse team and is considering whether to continue with its Web3 project. CEO Bob Iger said employees were asked to leave as part of a cost-cutting plan and create a “streamlined” business. The Wall Street Journal, citing people familiar with the matter, said that some 50 individuals were sacked from the metaverse project.
In 2022, Disney partnered with the Polygon blockchain for its Metaverse project. In September last year, it hired staff members for specialised in-house counsel for NFTs and DeFi.
Disney was looking to hire an experienced corporate attorney to work on emerging technologies, including NFTs, blockchain, metaverse, and decentralized finance, according to WSJ.
Circle Launches USDC for Cosmos
The Noble network will host the stablecoin Cosmos’ debut to get access to more than 50 Cosmos IBC blockchains. USD Coin will soon be available in the Cosmos ecosystem via the Noble network, according to a blog post from the Noble development team.
The Noble team stated that the USDC would be the first “native, fiat-backed stablecoin that is highly liquid and fully collateralized” on a network linked by the Cosmos Inter-Blockchain Communication Protocol. It claims the fiat-backed stablecoin will help address many difficulties Cosmos users face during transferring assets between networks.
“This integration will catalyse hundreds of millions of dollars in liquidity over the coming months in Cosmos and will seek to rectify the challenges that users and App chains face when interacting with bridged assets sourced from other ecosystems. Every blockchain needs a canonical and fungible version of USDC, and Noble exists to fulfil this critical need,” it said.