BarnBridge DAO Fined Over $1.7 Million for Selling Unregistered Securities

The SEC Penalizes BarnBridge DAO for Selling Unregistered Securities

The U.S. Securities and Exchange Commission (SEC) has imposed penalties totaling over $1.7 million on BarnBridge DAO (BOND) and its founders for allegedly offering unregistered crypto asset securities. According to the SEC, BarnBridge, a decentralized finance (DeFi) protocol, marketed and sold “SMART Yield bonds” that were compared to asset-backed securities. The project claimed that these bonds would offer the safety and security of traditional finance instruments while providing high returns. The SEC also alleges that BarnBridge operated SMART Yield pools as unregistered investment companies, attracting over $509 million in investments.

Penalties and Consequences

While neither admitting nor denying the SEC’s findings, BarnBridge agreed to surrender approximately $1.5 million in proceeds from the SMART Yield sales. Additionally, the project’s co-founders, Tyler Ward and Troy Murray, each agreed to pay $125,000 civil penalties. Coinbase had previously stopped trading services for BOND in September due to its regular review process of digital assets listed on its platform.

Current Status of BOND

At the time of writing, BOND is trading at $3.89. As the 661st-ranked cryptocurrency by market cap, it has seen a nearly 4% increase in the past 24 hours.

Hot Take: Penalties Issued to BarnBridge DAO by SEC

The U.S. SEC has taken action against BarnBridge DAO for allegedly offering unregistered crypto asset securities through its SMART Yield bonds. The penalties imposed on BarnBridge and its founders amount to more than $1.7 million. This case highlights the importance of complying with regulatory requirements when operating in the cryptocurrency space. It also serves as a reminder to investors to exercise caution and conduct thorough due diligence before participating in any investment opportunities, especially those that claim to offer high returns. Such actions by regulatory bodies aim to protect investors and maintain the integrity of the market.