One of the biggest DeFi crypto exchanges, SushiSwap, is run by the decentralized autonomous organization (DAO) that the United States Securities and Exchange Commission has subpoenaed.
Jared Grey, the executive head chef, who was also served with a subpoena by the securities regulator, has recently suggested creating a multimillion-dollar legal defense fund.
A $3 million legal defense fund has reportedly been offered to pay the legal expenses resulting from the SEC’s subpoenas, which include inquiries, lawsuits, and other difficulties focusing on core donors, according to Jared Grey’s post on Sushi’s forum. The goal is to create a legal entity that will lessen the DAO’s and its primary contributors’ liabilities.
“We are cooperating with the SEC. SushiSwap Head Chef Jared Grey stated, “We do not want to publicly comment on pending investigations or other legal problems. Regarding the legal defense fund, it was proposed that it would include all core donors who had contributed between Sushi 2.0’s ratification and the day the subpoenas were issued.
The $3 million legal defense fund would be housed in a new multi-sig, according to the idea, making money available for legal counsel as required. The fees charged by Kanpai will provide half of the funds. 35% of the cash will come from grants, while the remaining 80% will come from selling SUSHI tokens on the TWAP (Time-Weighted Average Price) market.
The establishment of the fund is supported by the majority of the sushi community. Given the enigmatic nature of the subpoenas, there is, nevertheless, a lot of pushback. After the legal defense fund proposal, the SUSHI token has fallen more than 4% and is now trading at $1.15.