Ethereum DeFi Protocol Barnbridge Faces SEC Action and Fines, Opens Token-holder Voting
Decentralized financial (DeFi) lending project Barnbridge has voted as a token holder to address legal charges the project faces from the US Securities and Exchange Commission (SEC).
Barnbridge confirmed in July that it expects an investigation from US regulators and has suspended all work related to the project to “minimize further legal liability”. However, the company did not disclose the reasons behind the investigation.
In an update on Tuesday, the project opened up voting for token holders on how the organization could respond to the regulator's charges. The move appears to be the first to publicly engage the community in how to respond to an SEC investigation.
The BarnBridge community can vote in favor of founders Tyler Ward and Troy Murray to comply with the regulator's order against the organization. You may also vote BarnBridge's treasury to pay all “liquidation” amounts or penalties required by the SEC order.
BarnBridge products are powered by Ethereum with a focus on risk reduction. They provide new ways for users to protect their space.
You can vote to allow Douglas Park, legal counsel for Barnbridge, to sign the final version of the SEC order on behalf of the DeFi Protocol, the photo post read.
BarnBridge Token holders have voted to retain legal counsel
In July, the protocol's token holders were asked to vote on whether or not to retain law firm Douglas Park for the DAO “for various legal tasks.”
This comes after Douglas Park posted on the platform's Discord channel in July that the platform and individuals have come under the SEC's scrutiny. Park said “all operations” on Burnbridge-related products, including liquid pools, must cease “to minimize further legal liability.”
Some Decentralized Autonomous Organization (DAO) members have raised doubts about the announcement made by Douglas Park. However, soon after co-founder Tyler Ward confirmed that Parks' message regarding the regulatory investigation into Burnbridge was true.
