- DeFi platform BarnBridge has reportedly come under investigation by the Securities and Exchange Commission
- News of the SEC’s possible clampdown came from the legal BarnBridge DAO’s legal team
- BOND, the native token of BarnBrdige, tanked following the news
YEREVAN (CoinChapter.com) — BarnBridge, a prominent decentralized finance (DeFi) platform, has reportedly come under investigation by the US Securities and Exchange Commission (SEC). As a result of the development, its native token, BOND, has started tanking.
The investigation on BarnBridge comes weeks after the SEC intensified its crackdown on the crypto industry. In a move that resulted in SEC Chair Gary Gensler catching a lot of flack, the financial watchdog filed lawsuits against the largest crypto exchanges, Binance and Coinbase.
According to the SEC, Binance had violated US securities laws by unlawfully encouraging US investors to buy, sell, and trade crypto asset securities through unregistered trading platforms.
Meanwhile, it also accused Coinbase of offering crypto asset securities to its customers without registering them first with the watchdog.
The Federal Agency has not yet made public the details of its alleged investigation into BarnBridge. However, it is perhaps investigating to see if it can classify the BOND token as a security or if the DeFi platform violated any laws.
BarnBridge DAO Freezes Operations Amid SEC Probe
The revelation about the alleged investigation into BarnBridge came from none other than the DeFi platform itself. In a message sent on the platform’s Discord channel, Douglas Park, the legal representative of the BarnBridge decentralized autonomous organization (DAO), revealed that the SEC was investigating their activities.
Park also revealed that some individuals affiliated with BarnBridge had also come under the SEC’s scanner.
In an apparent attempt to minimize potential legal risks, Park advised the suspension of all activities related to BarnBridge products, including the closure of liquidity pools.
Furthermore, he recommended refraining from receiving compensation for any contributions made in connection with the DAO’s investment activities.
Tyler Scott Ward, one of the Co-Founders at BarnBridge also verified the information. However, the company further clarified that the founders and office bearers will not comment on the investigation for the time being.
Some users fear that this may just be a hoax to defraud investors. This is due to the fact that there is no official report from the SEC confirming the news.
Nonetheless, BOND, the native token of BarnBridge, suffered a decline of around 10%. At the time of writing, the BOND price had dropped to $3.02. It currently remains over 98% below its all-time high of $185.7 on October 27, 2020.
In July 2022, the DeFi protocol’s token rallied an impressive 700% to bring its market cap to $153 million. The rally also pumped BOND at least 100 ranking points. However, its its current market cap stands at a little over $24.2 million, placing it at a distant 543 rank among the see of cryptos.