DeFi protocol BarnBridge said the U.S. Securities and Exchange Commission (SEC) is investigating its decentralized autonomous organization (DAO) and team member, according to a July 7 tweet.
To reduce the protocol’s legal liability, Douglas Park, BarnBridge DAO’s elected legal counsel, advised that the protocol should cease the creation of new pools, and old liquidity pools should be closed.
Additionally, Park stated that all work on BarnBridge-related products should stop, adding that people would no longer be compensated for any work concerning the protocol until further notice.
Park noted that the SEC’s investigation was ongoing and non-public, constraining him from sharing further information.
According to its website, BarnBridge is a decentralized finance (DeFi) protocol that allows users to earn a fixed return on their crypto asset deposits. At its November 2020 peak, the total value of assets locked on the protocol was nearly $600 million. However, it has since dropped to
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