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The U.S. SEC Takes Action Against Sushi DAO And Its Executives

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The U.S. SEC Takes Action Against Sushi DAO And Its Executives
The U.S. SEC Takes Action Against Sushi DAO And Its Executives

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A new update shared by Sushi DAO revealed the organization received a subpoena from the US Securities and Exchanges Commission. The report also revealed that Sushi DAO’s CEO, Jared Grey, received a subpoena from the SEC. This development marks the SEC’s latest move on DAOs after previous crackdowns last year.

United States regulators are tightening their grip on crypto given the increased rate at which they go after firms lately. Over the past few months, several cryptocurrency exchanges, DAOs, and firms have witnessed enforcement actions from US State regulators, SEC and CFTC.

Sushi DAO Proposes Legal Defence Funds In Response To the SEC’s Move

While the decentralized autonomous organization said it is working with the SEC, it is also preparing its defense strategy against the regulator. The March 21 tweet revealed that Sushi has proposed to set up a 3 million USDT legal defense fund to cater to legal costs for its core contributors.

According to Sushi’s report, US regulators seem determined to frustrate the DeFi establishment while the regulatory environment for DAO remains cloudy. The report disclosed that contributors have limited insurance policies without the capacity to protect them from legal issues. By setting up the legal defense funds, Sushi would be ready for what comes next. The fund would cover legal costs on litigation, inquiries, and other issues that might target core contributors. 

Previously, Sushi proposed a legal structure in March 2022 to establish a legal entity. The legal entity would reduce liability for Sushi DAO and its contributors. The recent subpoenas have prompted the DAO to see the need to reserve funds for handling legal requirements while the organization’s operations remain functional. 

DAO community decisions always move with votes, and Sushi’s new legal fund proposal is no exception. Most of the community has already voted for the legal defense fund, with about 70% nodding. However, the proposal came in less than 24 hours ago, so the outcome remains unclear.

Although Sushi seems prepared for what’s coming, evident in its legal defense fund proposal, news of the subpoenas would likely affect its governance token, SUSHI. Since the crypto community often responds quickly to news, this development is bound to rub negatively on SUSHI. 

Data from CoinMarketCap daily charts shows that SushiSwap (SUSHI) has witnessed an 8.24% price decline over the past seven days. The token price has increased by 1.04% over the past 24 hours, with a 0.55% decline on the hourly chart. It is still uncertain whether this news would push the token further down.

DAOs Appear Under US Regulatory Scrutiny

United States regulators have embarked on a spree of enforcement actions on crypto firms, especially cryptocurrency exchanges, these past months. However, it seems DAOs have also come under their radar. 

In September 2022, the Commodity Futures Trading Commission (CFTC) took enforcement action against Ooki DAO. The commission alleged that Ooki’s operations are illegal and that the DAO violated exchange-trading and registration requirements while offering unregistered crypto derivatives.

Ooki and Sushi are not the only DAOs that appeared under the US regulator’s radar. Earlier in March, the SEC went after CryotoFed DAO, a legally recognized decentralized autonomous organization in the US. 

However, CryptoFed’s executives expressed resilience in their statement. The officials noted they were not afraid of the SEC’s actions against the DAO since the case might end in their favor.

Crypto Projects That Can Earn You High Rewards

As the crypto market rebounds, investors are seeking more investment opportunities and mint profits. Below are the projects that can provide higher yields.

Mask Network (MASK)

Mask Network is a highly secure message protocol that allows users to send encrypted messages on popular social media platforms like Twitter and Facebook. It serves as a bridge between the decentralized network and the internet, offering users unparalleled security and privacy. Since its launch in July 2017, the network has expanded its capabilities and capacity to support various features. Recently, the network has enabled direct funding of Gitcoin grant campaigns through Twitter, and it plans to add peer-to-peer (P2P) payments and decentralized storage to its list of features.

Mask Network allows users to interact with DApps, share files on a decentralized platform, and send and receive cryptocurrencies securely. Built on the Ethereum blockchain, the network is secured by a proof-of-stake mechanism. Currently, it is trading at around $6, making it an affordable and accessible option for those seeking high security and privacy in their online interactions.

Fight Out (FGHT)

Fight Out, a top-ranked presale in 2023, is revolutionizing the fitness and health industry by introducing a move-to-earn platform. It incentivizes users to engage in physical activities from different locations worldwide by rewarding them with its utility token, FGHT. The platform plans to set up 20 gyms in different physical locations exclusively for FGHT token holders. These gyms will feature state-of-the-art equipment and facilitate community interactions and contests.

Combining Web3 and Metaverse technology, Fight Out provides users with an effective platform to unleash their passion for fitness and achieve their goals. Its mobile app offers users analytics and fitness plans ranging from amateur to professional levels. The platform has also attracted top athletes as brand ambassadors and coaches. FGHT powers all activities in the ecosystem, while off-chain token REPS serves as a reward for users.

REPS can be used for specific health and fitness subscriptions and training video access. FGHT raised over $5.5 million in its presale and is currently valued at $0.0309. FGHT is expected to list on centralized exchanges by April 5, 2023, with an anticipated increase in its value. Participants who purchased at least $50k worth of FGHT tokens will receive up to 67% extra tokens as bonus rewards.

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