Crypto lending and stablecoin project BarnBridge, It faces fines as well as legal action from U.S. securities regulators.
DeFi Protocol BarnBridge Prepares for Fines
The independent decentralized body is holding a vote on how to respond to securities regulators.
The decentralized finance (DeFi) protocol began voting on Tuesday on a proposal authorizing it to do whatever it takes to comply with the Securities and Exchange Commission’s Order, including compensating founders Tyler Ward and Troy Murray.
BarnBridge sought to create fixed income products for savvy on-chain crypto investors. But the team’s efforts stalled in July when it was revealed that the project was facing an investigation by the SEC.
It’s unclear what law the project may have violated, but the SEC’s involvement indicates that BarnBridge is likely providing some type of securities product to U.S. investors.
The current DAO vote shows that the project’s founders intend to comply with regulators’ demands. This is a possibility that could mean closure.
The proposal will liquidate the treasury. It also includes provisions that would allow Ward and Murray to distribute the tokens, but it does not specify to whom.
BarnBridge’s hoard holds over $200,000 in various cryptocurrencies, according to publicly available data on two wallets. Some of this money is also allocated by the proposal for legal expenses.
*This is not investment advice.
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