BarnBridge DAO has agreed to settle with the SEC for $1.7M in charges against it.
BarnBridge DAO, founders to settle SEC charges over $1.7M in unregistered SMART Yield bonds. The SEC cited a violation of securities laws for failing to register crypto asset securities. Gurbir Grewal emphasizes blockchain compliance, highlighting the universal application of security laws.
Decentralized finance (DeFi) protocol BarnBridge DAO and its founders Tyler Ward and Troy Murray are set to pay more than $1.7 million to settle a lawsuit filed by the Securities and Exchange Commission (SEC).
The lawsuit against BarnBridge relates to the failure to register the offering and sale of structured crypto asset securities known as SMART Yield bonds. The SEC said the DAO and its founders marketed these bonds without proper registration, a violation of securities laws.
BarnBridge DAO paid $1.7 million
BarnBridge DAO, a player in the evolving DeFi space, has agreed to a $1.7 million settlement with the SEC. The settlement includes approximately $1.5 million in proceeds Barnbridge received from the SMART Yield bond sale, and individual civil penalties of $125,000 to Ward and Murray.
The US SEC has accused DAO and its founders Tyler Ward and Troy Murray of failing to register “the offering and sale of structured crypto asset securities known as SMART Yield bonds.” According to an SEC statement, SMART Yield collects cryptocurrencies from investors to generate income for paying investors.
The SEC's investigation found that Ward and Murray were widely promoting SMART Yield on social media and YouTube channels related to decentralized finance, likening it to asset-backed securities. This approach has raised more than $509 million in investments from various investors.
With this settlement, the SEC reinforces its position on the importance of compliance in the blockchain and crypto space. The regulatory environment is evolving, and companies operating in this sector must navigate the regulatory obligations with a good understanding.
