BarnBridge Turns to Token Holders Amid SEC Legal Proceedings
BarnBridge, a cryptocurrency project currently facing legal action from the US Securities and Exchange Commission (SEC), has sought assistance from its token holders. The specific details of the SEC’s order have not been disclosed.
Voters Support Compliance with SEC Directives
On October 10th, BarnBridge initiated a voting process to seek approval for its creators, Tyler Ward and Troy Murray, to take necessary actions to ensure compliance with the SEC’s directives. The proposal also included authorizing the project’s legal counsel, Douglas Park, to sign the final version of the order on behalf of BarnBridge. The voters unanimously approved the proposal.
Furthermore, voters supported compensating Park for his legal services related to the investigation and allowing Ward and Murray to distribute the permitted tokens.
BarnBridge’s Decline and SEC Investigation
BarnBridge offers interest rate swaps but had to halt some products, including liquidity pools, in July due to potential legal liabilities after the SEC launched an investigation. At that time, Park announced that all protocol-related work should cease immediately until further notice.
As a result, BarnBridge’s native token, BOND, experienced a significant decline in value, losing nearly 50%. Coinbase also suspended trading of BOND on its platform in August.
Hot Take: BarnBridge Seeks Resolution Amid SEC Legal Proceedings
BarnBridge is navigating challenging waters as it faces legal proceedings initiated by the SEC. In an effort to comply with the regulator’s directives and address potential penalties, BarnBridge turned to its token holders for support. The unanimous approval of the proposal highlights the community’s commitment to resolving the situation and potentially winding down operations.
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