3 - 6 minute read
Decentralized Autonomous Organization (DAO) Sushi has recently come under scrutiny from the United States Securities and Exchange Commission (SEC), leading its head chef Jared Grey to issue a statement reassuring the community that the investigation does not imply any wrongdoing. The statement has been released as an FAQ format, addressing the most commonly asked questions from the community, and emphasizing the point that as far as Grey and his counsel are aware, no one associated with Sushi has violated US federal security laws.
Grey noted in the statement that it is still unknown what actions the SEC will take towards others associated with Sushi in the future, “We do not know, one way or the other, whether the SEC has purported to serve a subpoena on any other person or entity that it believes represents the Sushi community”. Nonetheless, Grey wants to ensure that there are adequate funds to handle legal needs for operational continuity and protect core contributors. Therefore, he acknowledged the Sushi DAO legal defense fund which is dedicated to $3 million and stated that any unused funds in the Sushi DAO Legal Defense Fund shall be refunded, provided that all legal costs have been covered.
Sushi community members are anticipating the launch of Sushi’s newly deployed concentrated liquidity model, V3. The official announcement of V3 is expected next week, as Grey told his Twitter followers on April 9. The concentration model has already posted a 100% increase in V3 TVL in the past 24 hours, and it is expected that networks supporting V3 on Sushi will increase to 30+ in the coming weeks.
Advice to Traders
Sushi’s head Chef Jared Grey’s statement does not mean that the SEC has concluded that Sushi violated any law, and also does not mean that the SEC has a negative opinion of any person, entity or asset. Grey has assured the community that he is cooperating with the SEC subpoena, and in line with that, Sushi has set up a $3 million defense fund for legal needs that may arise. If all legal costs are covered, any unused funds in the Sushi DAO Legal Defense Fund shall be refunded.
While it is still unknown what actions the SEC will take towards others associated with Sushi in the future, the concentration model of Sushi, V3, has already posted a 100% increase in V3 TVL in the past 24 hours, and it is expected that networks supporting V3 on Sushi will increase to 30+ in the coming weeks. This can be interpreted as a positive sign for traders, as it shows that the Sushi community is confident in the future of Sushi, and Sushi itself is a resilient asset that can withstand any potential legal issues.
Turning Up the Heat on Crypto-Related Crime
It is worth noting that the SEC is not singular in its efforts against crypto-related crime. Recently, US enforcement agencies have been turning up the heat on crypto-related crime. The increasing number of criminal cases involving cryptocurrency assets highlights the need for a greater understanding of the risks and responsibilities of cryptocurrency. Therefore, more compliance measures are expected to be introduced to ensure that traders comply with regulations and laws.
Sushi’s head Chef Jared Grey has recently reassured the community that the SEC subpoena does not imply any wrongdoing. Grey is cooperating with the SEC and has also set up a $3 million defense fund for legal needs that may arise. Sushi has yet to officially announce V3, but the concentration model has already posted a 100% increase in V3 TVL in the past 24 hours, and it is expected that networks supporting V3 on Sushi will increase to 30+ in the coming weeks. Finally, traders should bear in mind that US enforcement agencies are turning up the heat on crypto-related crime, and more compliance measures are expected to be introduced to ensure that traders comply with regulations and laws.
