A new class-action lawsuit confronting DeFi behemothic the Maker Foundation alleges that the company misrepresented the risks investors in the ecosystem faced, leading to catastrophic losses of collateral on MakerDAO on March 12.

The allegations and who stands to proceeds

The complaint, which was filed in the Northern District Court of California on Apr 14, accuses iii entities affiliated with Maker of negligence and intentional misrepresentation earlier investors, or "collateralized debt position holders."

According to the complaint, collateralized debt position holders lost $8.325 meg when the value of the Ethereum (ETH) that Maker held in collateral plummeted relative to the dollar-pegged stablecoin DAI in which those loans were held.

The adventure of such a scenario was not clear to these investors, the complaint alleges, further criticizing Maker's advertised decentralization:

"While misrepresenting to CDP Holders the actual risks they faced, The Maker Foundation neglected its responsibilities to its investors past either fostering or, at the very least, assuasive the conditions that led to Black Thursday, all after actively soliciting millions of dollars of investment into its ecosystem."

The complaint asks for a minimum of $8.325 one thousand thousand in compensation and $20 million in punitive damages.

Black Th for Maker and new class action suits

Every bit Cointelegraph reported, the collapse of ETH's price led to some lots of the token being sold for gratis in major debt auctions, as well equally discussions about whether to shut off Maker's liquidation bots.

Speaking to Cointelegraph, the lead attorney for the plaintiff, Adam Heder of Harris Berne Christensen, declined to comment on the fate of Maker should the judge side with the class.

Heder likewise denied any relationship to a rash of class deportment filed in New York at the outset of April confronting a who'southward-who of major crypto firms.