BarnBridge DAO has been instructed to put a closure on its present liquidity pools due to the fact that there is an ongoing investigation being carried out by the Securities and Exchange Commission of the U.S.
BarnBBridge DAO, which is into operating a small DeFi protocol, has been instructed by its lawyer to suspend all operations connected to BarnBridge-oriented products. The lawyer, in this case, is Attorney Douglas Park, who has been taken on board by BarnBridge only recently. The message that was forwarded by him to the DAO team through Discord speaks about the ongoing investigation of the DAO, as well as its team members.
In his advice, he mentions the fact that all the present liquidity pools should see closure and none to be initiated currently, to avert further legal penalties. There is a further mention of issues related to compensation being paid to employees, which should not be done in any situation whatsoever.
The Co-Founder of BarnBridge, Tyler Ward, acknowledged the aspect of having received the instructions and also the fact that he is not to pass any comments on the matter. In this case, both the parties, BarnBridge, as well as the SEC, are seemingly holding back the details, and nothing more is being divulged from their end.
BOND, which is BarnBridge’s conventional token, has taken a hit following all of this. It has gone down by 9.3%, amounting to $3.01 in the past 24 hours. The total value locked (TVL) of BarnBridge is presently standing at $1.35 million as against the figure of $574.9 million in November 2020.
BarnBridge was officially set up in September 2020 with the aim of assisting investors in hedging against price inconsistencies. The protocol provides interest rate swaps, enabling variable yields to be swapped at a set rate.
The SEC seems to be up and about, targeting the crypto industry in probable cases of fraud, Binance and Coinbase being the biggest examples, followed now by BarnBridge.
Source: https://www.cryptonewsz.com/barnbridge-instructed-to-close-liquidity-pools/