Jared Gray – the “chef de cuisine” (CEO) of automated market maker Sushi Swap – is trying to create a $3 million legal defense fund after being subpoenaed by the Securities and Exchange Commission (SEC).
Gray declined to comment further on ongoing investigations, but said he and Sushi were cooperating with the agency.
- In a blog post On Tuesday, Gray said Sushi Dao’s new legal defense fund would cover “reasonable attorney’s fees” for major contributors active since the ratification of the bill. Sushi 2.0.
- Funds for the DAO will be raised through a combination of Kanpai fees (50%), grants (35%) and sales of the SUSHI token (15%). SUSHI is down 2.34% on the day.
- The $3 million USDT will be held in a new multisig, and its funds will be made available to pay legal fees as needed.
- “The international regulatory environment for DAOs remains evolving and options for contributor insurance policies remain limited,” Gray wrote. “It has become clear that funds must be available to meet legal business continuity needs and to protect key contributors.
- A DAO is a decentralized autonomous organization, theoretically governed in a decentralized manner by voting token holders. However, a commenter on Grey’s proposal asked how the Sushi DAO even got “subpoenaed” in the first place.
- “I haven’t received any letters in my mail and I follow the Dao like all the other members,” he wrote.
- Others called on Gray to release the agency’s specific allegations against Sushi to “expose the anarchy of the SEC.”
- The SEC has received countless criticisms from the crypto industry / pro-industry politicians for filing numerous lawsuits and investigations against crypto companies in an environment of regulatory uncertainty.
Binance Free $100 (Exclusive): Use this link to sign up and receive $100 free and 10% off Binance Futures fees for the first month (terms).
PrimeXBT Special Offer: Use this link to sign up and enter code POTATO50 to receive up to $7,000 on your deposits.