# kaal:claim:3652481-040

**Claim.** Without a legal wrapper, DAOs face potential regulatory enforcement actions and civil liability not only at the organization level but against individual participants.

**Type.** failure  **Support.** argued

**Holds when.**

- no off chain legal entity has been formed

**Source quote.**

> Without a legal wrapper, DAOs face potential regulatory enforcement actions and civil liability, not only at the organization level but against individual participants.

**From.** Wulf A. Kaal, *Decentralized Autonomous Organizations – Internal Governance and External Legal Design* (2020), V. Conclusion, page 65

**Cite as.** Wulf A. Kaal, Decentralized Autonomous Organizations – Internal Governance and External Legal Design (2020). SSRN: https://ssrn.com/abstract=3652481

**Verify.** sha256 of source PDF `530b3a40c244aeca2eb4c53f4c9b4d6b2962bd6be9f92b4ebe17139c17f4c0e0` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202020%20-%20Decentralized%20Autonomous%20Organizations%20%E2%80%93%20Internal%20Governance%20and%20External%20Legal%20Design.pdf

**Failure mode.** unwrapped DAO liability exposure  (family: legal-personality-and-liability-gap)

**Topics.** law-and-legal-systems, compliance, dao

**Keywords.** legal-wrapper, personal-liability, enforcement, dao-legal-design

**Related claims.**

- extended_by: https://wulfkaal.github.io/claims/3799320-009
- supported_by: https://wulfkaal.github.io/claims/5254152-028
- restated_by: https://wulfkaal.github.io/claims/5254152-015
- extended_by: https://wulfkaal.github.io/claims/4529715-022
- supported_by: https://wulfkaal.github.io/claims/5254152-033

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.