- The SEC recently subpoenaed Sushi DAO and head chef Jared Grey.
- Jared Grey has proposed to establish a $3 million legal defense fund to cover the legal expenses.
- The SUSHI token has dropped more than 4% since the proposal of the fund.
The United States Securities and Exchange Commission recently subpoenaed the decentralized autonomous organization (DAO) behind SushiSwap, one of the largest DeFi crypto exchanges. Head Chef Jared Grey, who also received a subpoena from the securities regulator, has since proposed to establish a multi-million dollar legal defense fund.
According to Jared Grey’s post on Sushi’s forum, a $3 million legal defense fund has been proposed to cover the legal costs arising from the SEC’s subpoenas, which include inquiries, litigation, and other issues targeting core contributors. The aim is to establish a legal entity that will reduce liability for the DAO and its core contributors.
“We’re cooperating with the SEC. We do not intend to comment publicly on ongoing investigations or other legal matters,” said SushiSwap Head Chef Jared Grey. As for the legal defense fund, the proposal stated that it will cover all core contributors that have been active between the ratification of Sushi 2.0 and the day that the subpoenas were delivered.
The proposal further stated that the $3 million legal defense fund would reside in a new multisig, which will make funds available for legal representation as needed. Half of the money for the funds will come from Kanpai fees. Grants will supply 35% of the funds and the rest will come from TWAP (Time-Weighted Average Price) market selling of the SUSHI token.
The majority of the Sushi community is in favor of establishing the fund. However, there is considerable opposition, given the mysterious nature of the subpoenas. The SUSHI token has tanked more than 4% since the legal defense fund was proposed and is currently trading at $1.15.
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