Sushi and its ‘head chef’ receive SEC subpoena

DeFi task Sushi and its main person person been subpoenaed by the U.S. Securities and Exchange Commission (SEC), according to a forum station connected March 21.

Sushi subpoenaed by regulators

That forum post, published by Sushi “head chef” Jared Grey, indicates that some helium and the task itself were precocious served an SEC subpoena.

That station suggests establishing a $3 cardinal ineligible money to screen ineligible costs, funded with Tether’s USDT stablecoin and introduced done a DAO proposal.

Results from an aboriginal canvass attached to Grey’s archetypal forum station suggest that overmuch of the assemblage is successful favour of specified a ineligible fund, with 80% of 21 voters stating that they favour establishing the fund. However, that ballot is not a determination from Sushi’s DAO.

The forum station gives fewer different details connected the quality of the subpoena. The station says that Sushi volition not remark further but that it is cooperating with the SEC.

The worth of Sushi’s autochthonal cryptocurrency token (SUSHI) fell from $1.22 to $1.15 soon aft the news, representing a nonaccomplishment of astir 6.5%.

Can the SEC modulate DeFi?

In theory, immoderate decentralized concern task should beryllium resistant to regularisation owed to a deficiency of cardinal authorization that tin beryllium targeted by authorities.

As such, the Sushi assemblage questioned however Sushi itself was subpoenaed. Third-party sites suggest that the task is headquartered successful New York oregon Japan, but it is not wide that immoderate offices exist. Supposedly, members of the project’s DAO could beryllium subpoenaed, but astatine slightest 1 subordinate of the DAO has denied receiving the subpoena.

Sushi is not the archetypal decentralized crypto task to pull the attraction of the SEC. In 2021, the SEC took enactment against the fraudulent DeFi Money Market. And successful 2018, the SEC took enactment against the aboriginal decentralized speech Etherdelta and its founder.

It is imaginable that the SEC is looking into different decentralized projects arsenic well. Unverified rumors emerged astir March 3 that respective DeFi platforms had received a Wells announcement from the U.S. SEC implicit an unspecified play of time.

However, a Wells announcement would bespeak that the SEC intends to instrumentality enforcement enactment — whereas Sushi’s subpoena lone implies an investigation.

The station Sushi and its ‘head chef’ person SEC subpoena appeared archetypal connected CryptoSlate.