We Sued A DAO, but why?

On March 31st, Patagon Management LLC sued Wei “Max” Wu in the Southern District of New York. Our lawsuit focuses primarily on broken promises, unjust enrichment and failure to operate as a proper partnership.

Mr. Wu developed and manages a DAO known simply as Spartacus DAO, with the token, $SPA (and its derivates, sSPA and wsSPA) representing ownership in this DAO. The DAO was a simple fork of Olympus DAO, and raised tens of millions before the project collapsed (OHM had Ponzi-esque tokenomics at its core). Mr. Wu, realizing the token had basically served its purpose and was no longer useful, proposed a restructuring, which was agreed on by the majority of stakeholders. Under this system, investors could either leave and cash out, or be involved in a continued version of Spartacus with an new DEX like product.

This DEX like product never game, and investors want their money back after nearly a year of nothing. We decided to take legal action against Mr. Wu as we have a significant position in Spartacus, and we feel it is in the interest of the community to win this case.

We will drop the case without prejudice if he respects the community’s desire to disolve. Otherwise, he will be facing the same end result and the issue of paying our legal fees.