BarnBridge DAO has been ordered to close its current liquidity pools pending an ongoing investigation by the US Securities and Exchange Commission
BarnBBridge DAO, which operates a small DeFi protocol, has been ordered by its attorney to cease all operations related to BarnBridge-oriented products. The attorney in this case is Attorney Douglas Park, recently acquired by BarnBridge. The message he forwarded to the DAO team via Discord speaks of the ongoing investigation DAOas well as his team members.
In his advice he mentions the fact that all current liquidity pools should be closed and none initiated at this time to avert further legal penalties. In addition, issues related to the payment of compensation to employees, which should not be done in any situation, are mentioned.
BarnBridge co-founder Tyler Ward confirmed that he had received the instructions and that he would have no comments on the matter. In this case, both parties, BarnBridge and the SEC, appear to be withholding the details and nothing further is being disclosed on their part.
BOND, BarnBridge’s legacy token, has taken a hit after all of this. It is down 9.3% over the past 24 hours to trade at $3.01. BarnBridge’s total value (TVL) is currently $1.35 million compared to $574.9 million in November 2020.
BarnBridge was formally launched in September 2020 with the aim of helping investors hedge against price inconsistencies. The protocol provides for interest rate swaps that allow for the exchange of variable returns at a fixed interest rate.
The SEC appears to be on the rise, targeting the crypto industry on likely fraud cases, with Binance and Coinbase being the biggest examples, followed by BarnBridge.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.