BarnBridge DAO calls halt to ‘all work’ on DeFi protocol amid SEC probe
BarnBridge DAO members have been told to pause “all work” related to the project after a reported probe by the United States Securities and Exchange Commission (SEC).
In a July 6 post to the platform’s Discord channel, Douglas Park, a lawyer for the decentralized autonomous organization revealed the news to members.
“I am letting you know that the Securities and Exchange Commission is investigating BarnBridge DAO and individuals associated with the DAO,” Park said.
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In order to “reduce potential further legal liability,” Park suggested “all work” on BarnBridge-related products should stop — including the closure of liquidity pools — and that individuals should not receive compensation for work flowing from the investment efforts of the DAO.
Co-founder Tyler Ward, presumably dubbed “Lord Tyler” on Discord, confirmed Park’s message was true on BarnBridge’s Discord shortly after.
Park and Ward didn’t explain why the SEC launched a probe into BarnBridge DAO. Park however explained that because the investigation is “ongoing” and “non-public,” only limited information can be shared.
Between June 30 and July 3, 100% of BarnBridge (BOND) token holders — voted on a proposal to retain the law firm Park & Dibadj LLP — of which Park is the managing partner — as legal counsel for the DAO “for various legal work.”
213,000 votes were cast and 201,000, or 94.3%, of them came from the wallet “barnbridge.eth.”
The timing and subject of the proposal may suggest the SEC launched an investigation into BarnBridge DAO before June 30.
Some DAO members have raised suspicions over the announcement, however.
One member of the Discord asked for supporting evidence of the SEC’s investigation and implied BarnBridge’s founders may be
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