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Sushi DAO Proposes $3 Million Legal Defense Fund Following SEC Subpoena

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Sushi DAO Proposes $3 Million Legal Defense Fund Following SEC Subpoena 13
  • Sushi DAO and its head chef Jared Grey were served with a subpoena by the SEC earlier today. 
  • Grey has proposed a $3 million Sushi DAO legal defense fund to fund the legal costs. 
  • The defense fund would cover all core contributors that have been active since Sushi 2.0 went live to the present day. 
  • Half of the fund will be funded by Kanpai fees and the rest would come from grants and market selling of SUSHI. 

The decentralized autonomous organization (DAO) behind the decentralized crypto exchange SushiSwap has been served a subpoena by the U.S. Securities and Exchange Commission (SEC). The securities watchdog also subpoenaed CEO or “head chef” Jared Grey. The subpoenas came earlier today. Grey has proposed that the DAO establish a legal defense fund to cover the legal costs associated with the subpoenas. 

Sushi DAO legal defense fund will cover core contributors

According to the proposal posted by head chef Jared Grey on Sushi DAO’s forum, the DAO, and its contributors are cooperating with the SEC. Grey added that there is no intention to comment publicly on the ongoing investigation or other legal matters. 

The head chef proposed a legal defense fund of $3 million to cover the legal bills including inquiries, litigation, and other matters concerning its core contributors. The aim is to reduce liability for the DAO and the contributors. The post stated that the fund’s coverage would be extended to core contributors that have been active since Sushi 2.0 went live last year, to the present day.&

The international regulatory environment for DAOs remains in flux, and the options for contributor insurance policies remain limited. It has become evident funds must be available to handle legal needs for operational continuity and to protect core contributors.”

Head Chef Jared Grey

As for the composition of the legal defense fund, Grey informed the community that half of the funds would come from Kanpai fees in a lump sum payment. 35% of the funds would be taken from grants, and the rest would come from TWAP (Time-Weighted Average Price) market selling the SUSHI token. The token has tanked more than 5% since Jared Grey’s proposal was posted.&


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