- Some members of the DeFi protocol suspected a potential exit strategy at play.
- BarnBridge DAO is pausing its operations due to a probe by the United States SEC.
- The reason for the SEC’s investigation into the DAO and its members remains unknown.
Decentralized finance protocol BarnBridge DAO has reportedly halted all its operations following a probe by the U.S. Securities and Exchange Commission (SEC). Members of the decentralized autonomous organization have been asked to stop interacting with all products related to BarnBridge.
BarnBridge DAO took to Twitter earlier today to share the latest development with its online community. Douglas Park, the DeFi protocol’s legal counsel, posted a message on the DAO’s discord server that revealed the securities regulator’s investigation. The extent of the investigation reaches members of the DAO as well.
The DeFi protocol shut down all liquidity pools and restricted the opening of new ones. The DAO’s services and products will reportedly remain unavailable in a bid to reduce its potential legal liability. The platform will also stop compensating its contributors for any work related to BarnBridge products.
Co-founder Tyler Ward confirmed the news of the probe against his crypto firm and other people associated with the DAO but refused to comment any further. The DAO recently voted in favor of retaining Park & Dibadj LLP as legal counsel for the DAO to look after its legal affairs. It is likely that the SEC’s probe began before June 30, given that the governance vote to retain a law firm began on that date.
Sharing his take on BarnBridge DAO’s latest developments, crypto influencer Adam Cochran warned that the SEC was re-adjusting its attention and had started looking into the operations of smaller DeFi protocols. According to him, the DeFi protocol should be ready to get drowned in paperwork. Certain members of BarnBridge DAO suspected that the sudden turn of events could end up in an exit strategy.
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