Posted 12/22/2023, 5:44:00 PM
BarnBridge to Pay $1.7M Over Illegal Crypto Offering in First SEC Action Against a DAO
- BarnBridge DAO and founders to pay $1.7M to settle SEC charges over illegal crypto securities offering through SMART Yield product
- SEC said BarnBridge failed to register SMART Yield as an investment company despite raising $509M from investors, including in the U.S.
- First SEC action against a crypto startup structured as a "decentralized autonomous organization" (DAO)
- SEC said BarnBridge founders Ward and Murray held outsized control over DAO decisions, despite purported decentralization
- SEC says securities laws apply equally to traditional and crypto companies, whether incorporated, decentralized, or autonomous