The Securities and Exchange Commission of the United States has issued a subpoena to the decentralized autonomous organization (DAO) responsible for SushiSwap, a prominent DeFi cryptocurrency exchange. Jared Grey, the Head Chef of the organization, has also been served with a subpoena by the regulatory body. In response, Grey has suggested the creation of a legal defense fund worth millions of dollars.
As per Jared Grey’s post on Sushi’s forum, a proposed legal defense fund of $3 million has been put forth to cover the expenses arising from the SEC’s subpoenas. These subpoenas encompass inquiries, litigation, and related matters toward the core contributors. The primary objective of this fund is to establish a legal entity that can mitigate the liability for the DAO and its core contributors.
“We are currently collaborating with the SEC and, as a matter of policy, we refrain from making public statements regarding ongoing investigations or legal matters,” stated Jared Grey, the Head Chef of SushiSwap. The proposal for the legal defense fund aims to provide coverage for all core contributors who have been actively involved in Sushi 2.0 since its ratification until the day the subpoenas were issued.”
The proposal outlines a comprehensive plan for establishing a $3 million legal defense fund, which will be housed in a new multisig. This innovative approach will ensure that funds are readily available for legal representation as required. The proposal also highlights the funding sources for the legal defense fund, with 50% of the funds being generated from Kanpai fees. Grants will contribute 35% of the funds, while the remaining amount will be generated through TWAP (Time-Weighted Average Price) market selling of the SUSHI token. This strategic funding approach will ensure that the legal defense fund is well-funded and equipped to handle any legal challenges that may arise.
Although the Sushi community broadly supports the creation of a legal defense fund, significant opposition exists due to the subpoenas’ enigmatic nature. As a result, the SUSHI token has experienced a decline of over 4% since the fund’s proposal and is presently trading at $1.15.
