**BarnBridge DAO Settles for $1.7M with the SEC Over Unregistered Bonds**
The decentralized finance (DeFi) protocol, BarnBridge DAO, and its founders have agreed to pay over $1.7 million in settlement charges to the Securities and Exchange Commission (SEC). The settlement is attributed to allegations of offering and selling unregistered SMART Yield bonds, leading to a violation of securities laws. The SEC accused BarnBridge DAO and its founders, Tyler Ward and Troy Murray, of failing to register the structured crypto asset securities known as SMART Yield bonds, resulting in this settlement.
**BarnBridge DAO’s $1.7M Settlement**
The settlement includes BarnBridge yielding almost $1.5 million in proceeds from SMART Yield bond sales, and individual civil penalties of $125,000 for both Ward and Murray. According to the SEC’s statement, the SMART Yield pooled cryptocurrencies from investors to generate returns for paying investors. The DAO founders extensively promoted SMART Yield, attracting investments exceeding $509 million from various investors.
In light of this settlement, the SEC emphasizes the necessity for compliance within the blockchain and crypto space. It further underscores the evolving regulatory environment in which companies operating in this sector must navigate with a keen awareness of their regulatory obligations.
**FAQs**
1. **What are SMART Yield bonds?**
SMART Yield bonds are structured crypto asset securities offered by BarnBridge DAO for pooling cryptocurrencies from investors to generate returns for paying investors.
2. **What were the allegations against BarnBridge DAO by the SEC?**
The SEC alleged that BarnBridge DAO and its founders, Tyler Ward and Troy Murray, failed to register the offer and sale of SMART Yield bonds, resulting in a violation of securities laws.
3. **What was the outcome of the settlement?**
The settlement includes BarnBridge yielding almost $1.5 million in proceeds from SMART Yield bond sales, and individual civil penalties of $125,000 for both Ward and Murray.