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CDS Crypto News SEC Investigation into BarnBridge DAO

Crypto News

SEC Investigation into BarnBridge DAO

SEC Investigation into BarnBridge DAO is resulting in The DAO's legal counsel advising all operations linked to BarnBridge to be halted.

ugur07/07/20231 Mins read693

Sec Investigation Into Barnbridge Dao Is Resulting In The Dao'S Legal Counsel Advising All Operations Linked To Barnbridge To Be Halted

BarnBridge DAO, a decentralized finance (DeFi) protocol, is reportedly under investigation by the U.S. Securities and Exchange Commission (SEC). The news was relayed via a Discord message from the DAO’s legal counsel, advising all operations linked to BarnBridge to cease.

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SEC Investigation into BarnBridge DAO

Douglas Park, the attorney representing BarnBridge, informed DAO members about the ongoing SEC investigation. He advised that all existing liquidity pools should be closed, and no new ones should be initiated. Furthermore, he recommended that all work related to BarnBridge should stop, and individuals should not receive compensation for any BarnBridge-related work until further notice.

Impact on BarnBridge’s Native Token, BOND

Following the news of the SEC probe, the price of BOND, BarnBridge’s native token, experienced a significant drop. According to data from CoinGecko, BOND’s price fell by 9.3% within 24 hours, reaching $3.01.

BarnBridge’s DeFi Protocol

Launched in September 2020, BarnBridge aimed to provide a platform for investors to hedge against price fluctuations. The protocol’s total value locked (TVL) stood at $1.35 million as of the announcement, a significant drop from its peak of approximately $574.9 million in November 2020.

SEC’s Increasing Scrutiny of the Crypto Industry

The investigation into BarnBridge is another instance of the SEC’s increasingly aggressive stance towards the crypto industry. It signals that the regulator’s jurisdiction extends beyond centralized crypto exchanges. In recent months, the SEC has filed lawsuits against Binance and Coinbase, the two largest crypto exchanges in the industry, for alleged violations of securities laws.

About BarnBridge

BarnBridge is a decentralized finance (DeFi) protocol that offers a platform for investors to hedge against price fluctuations. It provides a risk tokenization protocol that aims to reduce risks associated with DeFi. By tokenizing risk, BarnBridge allows users to choose risk profiles that align with their investment strategies.

Sources:theblock