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Arrests of Core Members of Chinese DAO Raises Concerns About Legal Risks and Future Regulations

Several core members of a well-known Decentralized Autonomous Organization (DAO) in China have been arrested for issuing tokens and incentivizing members, which has led to a police investigation. This could be the first instance of a DAO being implicated in criminal activity in China. The founder of the ManKun Law Firm has highlighted potential legal risks in two areas for the development of DAOs in China: fundraising and securities, and the structure of some DAOs.

This development could lead to increased scrutiny and potentially stricter regulations for DAOs in China, which could have global implications. Despite these challenges, many in the crypto community remain optimistic about the future of DAOs.

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