Jared Grey – the “Head Chef” (CEO) of the automated market maker Sushi Swap – is attempting to establish a $3 million legal defense fund after being subpoenaed by the Securities and Exchange Commission (SEC).
Grey declined to comment further on the ongoing investigations but said he and Sushi were cooperating with the agency.
In a blog post on Tuesday, Grey said that the new Sushi Dao Legal Defense Fund would cover “reasonable attorney’s fees” for core contributors who have been active since the ratification of Sushi 2.0.
Funds for the DAO will be collected through a combination of Kanpai fees (50%) Grants (35%) and sales of the SUSHI token (15%). SUSHI is down 2.34% on the day.
The $3 million USDT will be held in a new multisig, and its funds will be made available to pay legal expenses as needed.
“The international regulatory environment for DAOs remains in flux, and the options for contributor insurance policies remain limited,” wrote Grey. “ it has become evident funds must be available to handle legal needs for operational continuity and to protect core contributors.”
A DAO is a Decentralized Autonomous Organization, theoretically governed in a decentralized fashion by token holders with voting rights. However, one commenter on Grey’s proposal asked how the Sushi DAO had even been “subpoenaed” in the first place.
“I got no letter in my mail and I am the Dao just like all the other members,” he wrote.
Others called on Grey to publish the agency’s specific claims against Sushi to “expose the SEC’s lawlessness.”
The SEC has received countless criticisms from the crypto industry / industry-friendly politicians for filing numerous lawsuits and investigations against crypto companies in an environment of regulatory uncertainty.
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