• The SEC has issued a subpoena to Sushi DAO and its “head chef” Jared Grey as part of an ongoing investigation into the DeFi industry and cryptocurrencies.
• Sushi DAO has requested a $3 million USDT legal defense fund from its decentralized autonomous organization in order to cover potential legal and financial consequences resulting from the SEC’s investigation.
• A combination of revenue streams, including 50% of Kanpai fees generated by the SushiSwap decentralized exchange platform, 35% of grants, and 15% of Sushi tokens generated from selling tokens on the market using TWAP method, will be used to support the legal defense fund.
SEC Investigating DeFi Industry & Cryptocurrencies
The Securities and Exchange Commission (SEC) has issued a subpoena to Sushi DAO and its “head chef,” Jared Grey, as part of the regulator’s ongoing efforts to scrutinize the decentralized finance (DeFi) industry and cryptocurrencies. The news was announced in a blog post on the Sushi Forum.
Sushi DAO Requests Legal Defense Fund
Following the SEC’s recent subpoena, the protocol’s head chef, Jared Grey, has requested a $3 million USDT legal defense fund from the decentralized autonomous organization. The fund will be used to cover the costs of defending against potential legal and financial consequences resulting from the SEC’s investigation, according to Grey.
Revenue Streams Used To Support Fund
A range of revenue streams would support the Sushi DAO legal defense fund to limit the financial burden on the organization while providing sufficient funds to cover legal expenses and protect its financial solvency. The revenue stream will be a combination of 50% of Kanpai fees generated by the SushiSwap decentralized exchange platform; 35% of grants generated by Protocol’s business development activities; 15%of Sushi tokens generated from selling tokens onmarket using TWAP method; accordingto Grey.
Additional Funds Available As Needed
IftheSushidaolegaldefensefundisexhaustedbeforetheconclusionofthelegalproceedings,theprotocolhasmade$1millionUSDTavailabletocoverlegalexpensesasneededaccordingtoGrey. ThisprovisionensuresthatprotocolcancontinuetooperateeffectivelyinthefaceofpotentiallegalandfinancialconsequencesresultingfromtheSEC’sinvestigation.
Conclusion
In summary, this article indicates that The Securities and Exchange Commission (SEC) is investigating potential securities law violations by Sushi DAO including selling tokens that may be considered securities without proper registration. In response, head chef Jared Grey has requested a $3 million USDT legal defense fund which will be supported by various revenue streams such as 50% of Kanpai fees generated by their decentralized exchange platform as well as 35% grants made available through their business development activities with another 15% coming form twapping token sales on markets available for them at any given time . Additionally if these sources are exhausted then they have an additional reserve of $1 million USTD set aside for any further expenses related tot he matter at hand .