The decentralized finance (DeFi) lending initiative, BarnBridge, has publicized a vote for its token holders to determine a response to the legal allegations and potential fines imposed by the US Securities and Exchange Commission (SEC).
In July, BarnBridge acknowledged that it’s under scrutiny by US regulatory bodies and subsequently ceased all project-related activities to minimize any additional legal repercussions. At that time, the specifics behind this investigation were not disclosed.
In a recent update, BarnBridge has initiated a vote among its token holders, seeking guidance on addressing the SEC’s concerns. This step seems to mark the first attempt by the project to actively involve its community in decisions related to the regulatory investigation.
BarnBridge is offering its community a chance to vote on the project’s next steps in light of the SEC’s actions. Token holders have the option to support the project’s founders, Tyler Ward and Troy Murray, in adhering to the regulatory body’s demands against the company. Additionally, they can cast their vote for the BarnBridge Treasury to shoulder any fines or “disgorgement” amounts stipulated by the SEC.
Powered by Ethereum, BarnBridge’s products are designed to tokenize risk exposure, granting users innovative methods to safeguard their investments.
Moreover, the community has the choice to endorse Douglas Park, the legal representative for BarnBridge, to finalize and sign the SEC’s order, representing the DeFi platform’s interests, as detailed in the snapshot post.
BarnBridge Token Holders Voted to Retain Legal Counsel
In July, the members of the protocol were presented with a decision, seeking their vote on the proposition to employ the Douglas Park law firm to represent the DAO for varied legal requirements.
The context for this vote emerged when Douglas Park took to BarnBridge’s Discord channel in the same month, announcing that both the platform and certain individuals were under the scrutiny of an SEC investigation. Park advised a cessation of “all work” tied to BarnBridge, including activities linked to liquidity pools, to diminish the possibility of accruing more legal liabilities.
This revelation by Douglas Park was met with skepticism by some members of the decentralized autonomous organization (DAO). However, co-founder Tyler Ward soon verified the authenticity of Park’s declaration, confirming the ongoing SEC examination of BarnBridge.