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BOND Token Slumps 10% as BarnBridge Faces SEC Investigation

Breaking News

Team members of the decentralized finance (DeFi) protocol BarnBridge are being investigated by the U.S. Securities and Replace Price (SEC) in the most new regulatory tussle faced by a crypto company in the nation.

BarnBridge affords curiosity rate swaps that enable for any variable yield provided by crypto platforms, a lot like Aave or Compound, to be swapped to a save rate. It had correct over $1.2 million locked tokens as of Friday. At its height the protocol held $500 million in users’ resources.

“I’m letting you know that the Securities and Replace Price is investigating Barnbridge DAO and folk linked to the DAO,” wrote Douglas Park, duly elected correct form counsel to Barnbridge DAO, in a Discord message on Friday morning.

BarnBridge’s BOND tokens slumped over 10% following the Discord message posted by Park.

“For the explanation that SEC’s investigation is ongoing and non-public, I’m restricted in the concepts that I’ll fragment publicly,” Park added.

Park talked about that original liquidity pools on BarnBridge might per chance per chance well well also just tranquil be closed and that each and every work on Barnbridge-linked merchandise might per chance per chance well well also just tranquil extinguish given the SEC actions. Other folks submitting work is potentially no longer compensated, he added.

Extra specifics of the investigation admire no longer been publicly launched.

Edited by Parikshit Mishra.

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