SushiSwap Subpoenaed by SEC, Proposes Legal Defense Fund

SushiSwap, the Ethereum-based decentralized exchange, has received a subpoena from the US Securities and Exchange Commission (SEC), which could potentially result in regulatory enforcement action against the DAO.

The subpoena was issued to Head Chef Jared Grey, according to a proposal submitted to the Sushi DAO for the establishment of a legal defense fund. The proposal seeks to make $3 million available for the fund in the form of Tether’s $USDT stablecoin. It also includes a contingency to make another $1 million worth of $USDT available if the initial funds are depleted.

According to the proposal:

the Sushi DAO’s Legal Defense Fund will provide coverage for multiple attorney fees and charges levied against core contributors who have been active since the ratification of Sushi 2.0 up until the present time. Even in case of a contributor resigns or gets abruptly terminated, the Legal Defense Fund will continue with the payments until the legal proceedings have concluded.