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US SEC sends subpoena to DeFi project ‘Sushi’

Subpoena from SEC

Sushi DAO, which operates Sushi, a decentralized exchange (DEX), and “Head Chef” Jared Gray have been found to have received a subpoena from the US Securities and Exchange Commission (SEC).

Mr. Gray proposed the creation of a legal defense fund on the forum on the 22nd. He explained that he recently received a subpoena from the SEC. And he said only that he is currently cooperating with the SEC, and declined to comment publicly on ongoing investigations or legal matters.

In his proposal, Mr. Gray pointed out that while the global regulatory environment for DAOs (Decentralized Autonomous Organizations) is still in flux, policy regarding contributor insurance is limited. To solve this challenge, we proposed to allow Sushi DAO to use 3 million USDT (equivalent to 390 million yen) as a defense fund for core contributors.

What are DAOs

Abbreviation for “Decentralized Autonomous Organization”. Unlike general companies, there is no central administrator like a manager, and operation management is performed by participating members and algorithms.

Cryptocurrency Glossary

He also explained that if this fund is used up, it will be decided that 1 million USDT will be available as needed. The fund will remain available until the legal process is completed. Specifically, it says it will be available for responding to investigations, litigation, and attorney fees.

As a precedent, Gray explained that MakerDAO has a similar defense fund. As of this writing, the proposal has received 21 votes, with 80% in favor of creating the fund.

connection: What is “SushiSwap” that even beginners can understand? | Explanation of features and mechanism

Community reaction

Sushi is a DEX that can trade over 400 tokens. Since it is a DEX, users can trade while managing their private keys. Farming can also be rewarded, and the official Twitter account explains that “Sushi is an ecosystem of DeFi (decentralized finance) tools.”

connection: What is DeFi (decentralized finance) | A thorough explanation of the advantages and disadvantages that even beginners can understand

In response to Mr. Gray’s proposal, comments such as “How to summon a DAO without a central administrator” and “Sushi DAO should not include members from the United States” were posted. sent.

It is unclear what the SEC sees as a problem because the details of the proposal are not explained. Sushi explains on his official website that eventually it will allow decentralized operation by the community, but initially only votes on proposals submitted by core members will be enforceable.

The price of Sushi token plummeted after Gray’s proposal. According to data from CoinGecko, at the time of writing this article, the price was 152 yen, a decrease of 2.4% compared to 24 hours.

connection: What are the legal issues surrounding DAO in the United States | Contributed by Gamma Law

US SEC sends subpoena to DeFi project ‘Sushi’ appeared first on Our Bitcoin News.


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