If other states follow in Wyoming’s footsteps, this could pave the way for industry-wide acceptance of how to integrate the DAO organizational structure that is so popular in Ethereum and DeFi developer communities.

Wyoming Governor Mark Gordon signed bill SF0038 into law on April 21, 2021 and the bill became effective later that year on July 1, 2021.

The bill allows for DAOs to exist as a special type of LLC, or Limited Liability Corporation. It also allows for existing LLCs to elect to become a DAO. In order to be registered as a DAO LLC, the bill requires, among other things, the following:

• Registration of Smart Contract addresses
• Statement on how the DAO is governed, including the extent to which any governance is automated.
• Election of “member managed” or “algorithmically managed”
• “DAO LLC” must be included in the title of the organization

What advantage is there from registering as a DAO LLC instead of simply an LLC? One reason may be in membership responsibilities. In a DAO, members do not necessarily have a fiduciary responsibility to the LLC.

One important note is that DAOs may only be formed for lawful activities, and the bill allows the Secretary of State to dissolve the DAO LLC if it is determined to no longer serve a lawful purpose.

The full text of Wyoming’s DAO law may be found here: https://www.wyoleg.gov/Legislation/2021/SF0038

Some Frequently Asked Questions on Wyoming’s DAO LLC can be found here: https://sos.wyo.gov/Business/Docs/DAOs_FAQs.pdf

The post How to Legally Register a DAO LLC in Wyoming first appeared on MetaverseWatcher.

The Celsius Network halted all withdrawals today, preventing its users from taking their crypto deposits and yield off of the Celsius platform, and setting off speculation about the company’s solvency. Clearly there are liquidity issues or they would not have suspended withdrawals, it remains to be seen whether they have enough assets to pay out on all of their liabilities once the dust settles.

What are the events that led up to this crisis? Here is a full timeline of events that you will not get anywhere else:

• October 2021 – New York Attorney General (AG) sends letters to crypto yield savings platforms: Nexo, Celsius, and others,
• February 2022 – Nexo abandons US accounts
• April 2022 – Celsius abandons US accounts
• May 2022 – Celsius withdraws $0.5 billion from Terra/Luna
• May 2022 – Terra/Luna crashes
• June 2022 – Celsius suspends all client withdrawals

October 2021 – New York AG sends “Cease and Desist” letters to 2 crypto yield platforms

Letitia James, the New York state Attorney General, sent Cease and Desist letters to two crypto lending platforms and requested information from three other platforms. It appears that Nexo was the target of one of the C&D letters and that Celsius was the target for one of the requests for information. The other companies are unknown at this point.

February 2022 – Nexo abandons US accounts

Nexo prevents US customers from using its flagship “Earn Interest Product”, saying:

“Nexo’s Earn Interest Product in its current form will not be available for new clients, until the restructuring of the Earn Interest Product and the registration process with the relevant regulatory bodies are finalized, as per the recently received guidance.”

Nexo official subreddit

April 2022 – Celsius abandons US accounts

Shortly after Nexo, Celsius follows suit and prevents US clients from earning yield on their platform. In an announcement on the official company blog they say:

As we previously have acknowledged, Celsius has been working closely with regulators around the world. It is our intention to be as transparent with our community as possible. More specifically, we have been in ongoing discussions with United States regulators regarding our Earn product. As a result, there will be changes to the way our Earn product will work for users based in the United States.

Celsius official company blog

And more crucially:

New transfers made by non-accredited investors in the United States will be held in their new Custody accounts and will not earn rewards. Non-accredited investors can continue to swap, borrow, and transfer within their Custody accounts based on their local jurisdiction.

Celsius official company blog

May 2022 – Celsius withdraws $0.5 Billion from Terra/Luna

In May, Celsius made the decision to pull all $0.5 Billion USD from Terra’s Anchor protocol that was paying 17-19% yields. See Block Crypto’s writeup on that event.

May 2022 – Terra/Luna Crashes

The Terra/Luna algorithmic stable coin system crashes, precipitating a broader crash in the crypto markets. See our full writeup and analysis of that event.

June 2022 – Celsius suspends all client withdrawals

Celsius takes the drastic move of suspending all client withdrawals from its platform. This clearly indicates Celsius is facing a liquidity crisis and potentially a solvency crisis given the broader crypto market crashes of 20+% caused by Celsius’s action to halt withdrawals.

The post FULL Timeline of the Celsius Crypto Crash first appeared on MetaverseWatcher.