- Some members of the DeFi protocol suspected a possible exit technique at play.
- BarnBridge DAO suspends operations because of US SEC investigation.
- The rationale for the SEC’s investigation of the DAO and its members stays unknown.
Decentralized finance protocol BarnBridge DAO has reportedly halted all operations following an investigation by the USA Securities and Trade Fee (SEC). Members of the Decentralized Autonomous Group have been requested to cease interacting with all BarnBridge-related merchandise.
BarnBridge DAO took to Twitter earlier immediately to share the newest developments with its on-line group. Douglas Park, the authorized counsel for the DeFi protocol, posted a message on the DAO’s discord server that uncovered the securities regulator’s investigation. The scope of the investigation additionally reaches members of the DAO.
The DeFi protocol has closed all liquidity swimming pools and restricted the opening of latest ones. DAO’s providers and merchandise would stay unavailable with a view to scale back its potential authorized legal responsibility. The platform may even cease paying its contributors for any work associated to BarnBridge merchandise.
Co-founder Tyler Ward confirmed information of the investigation towards his crypto agency and others related to the DAO, however declined to remark additional. The DAO lately voted to retain Park & Dibadj LLP as counsel to the DAO to deal with its authorized affairs. It is seemingly that the SEC’s investigation started earlier than June 30, on condition that the governance vote to retain a regulation agency started on that date.
Sharing his views on the newest BarnBridge DAO developments, crypto influencer Adam Cochran warned that the SEC is readjusting its focus and has begun reviewing the operations of smaller DeFi protocols. In accordance with him, the DeFi protocol needs to be able to drown in paperwork. Some members of BarnBridge DAO suspected that the sudden flip of occasions might result in an exit technique.
