Home Coins Blockchain Bitcoin Ethereum How to Mining NFT Press releases Regulation Most Featured

SEC Closing in on Sushi Dao Only Means One Thing

Author Avatar
By Jessy Sloan - March 23, 2023 - 5 Mins Read

The US wing of the Securities and Exchange Commission has issued a subpoena to Sushi DAO in a move to close down on the crypto establishment. Over the past few months, SEC crypto regulation has been more of witch-hunting different crypto firms on several issues ranging from staking and securities trading. The major focus of the legal scuffle between the two parties is based on the SEC's commitment to close down Sushi's DeFi and DAO services. 

The ‘Head Chef’ Jared Grey, who has been acting as the company's CEO, is also targeted by the SEC, as it is rumored that they will soon issue him his own private subpoena. A crypto enthusiast on Twitter broke the news saying, "🚨@SushiSwap and their Head Chef Jared Grey, were served with an SEC Subpoena. 

While they are cooperating with the #SEC, #SushiSwap submitted a proposal make a of 3M USDT legal defense fund

The US seems committed to putting as many roadblocks to #DeFi" 

Sushi Responds to SEC — Seeks Legal Funding 

The team behind Sushi knows the case with the SEC will surely end up in court, so they are setting up a legal fund account to finance the case in court. They are targeting $3 million to cover the expenses that will occur while seeking their vindication. 

In their proposal, Jared Grey said, "The international regulatory environment for DAOs remains in flux, and the options for contributor insurance policies remain limited. Therefore, we propose Sushi DAO make available a legal defense fund of 3M USDT. This fund will cover legal costs regarding inquiries, litigation, and other issues targeting core contributors. As proposed in March '22, Sushi (Sushi Legal Structure 150) sought to establish a legal entity to reduce liability for contributors and the DAO. Yet, it has become evident funds must be available to handle legal needs for operational continuity and to protect core contributors."

Community members have already voted on this proposal, and the majority support the fundraising. According to the team leader, they hope to raise about $3 million USDT at the end of the fundraising. To make things more transparent, the team leaders said the fund would reside in a multisig wallet. "The 3M will reside in a new multisig, making funds available for legal representation as needed," the team leader added. 

Users' Reaction to the Case 

Those community members of Sushi have reacted to the issue at hand, with many saying that Sushi should not be on the "DAOs crypto-list" by the SEC. Many opined that Sushi is not a centralized entity and should not be served a subpoena by the SEC. 

One of them, while speaking on the Sushi forum, said, "How does ‘sushi’ even get subpoenad? The human I get, but sushi is a dao, without centralized entity isn’t it.

I understand if they go for Jared, but how are they trying to get the dao? By pressuring us with going after Jared?" 

Others demanded more transparency as they wanted to see the subpoena." While I fully understand and respect your position, please consider posting their subpoena and claims to help expose the SEC’s lawlessness. The industry and citizens of the US cannot fight something they cannot see," one added.