The Securities and Exchange Commission today announced a new case involving a crypto currency. Moreover, this time it’s related to a DAO. The latest sanction focusing on BarnBridge DAO and its 2 founders shows that work in this area continues uninterrupted. So, what are the details of the latest development?
Crypto Currency Case
SEC, announced that BarnBridge DAO, founded by Tyler Ward and Troy Murray, was penalized for unregistered securities sales. The two founders faced the wrath of the SEC for issuing assets to US citizens without permission. Due to the structured crypto asset securities known as BarnBridge’s SMART Yield bonds, the duo will make a payment of $1.7 million.
The Commission also charged the defendants with violations arising from operating BarnBridge’s SMART Yield pools as unregistered investment companies, imposing a fine of $125,000 on each. Gurbir S. Grewal, Director of the SEC’s Enforcement Division, had implied at the end of last year that 2023 would be the year of acceptance for those who issue unregistered securities, and he did his best throughout the year for this.
Grewal stated the following;
“The use of blockchain technology for the unregistered offering and sale of structured finance products to individual investors is contrary to securities laws. This case serves as an important reminder that these laws are applicable to everyone who wants to access our capital markets, whether they are anonymous, decentralized, or autonomous.”
