BarnBridge DAO and its founders, Tyler Ward and Troy Murray, have agreed to pay more than $1.7 million to settle charges brought by the US Securities and Exchange Commission (SEC). The charges were related to the failure to register the offer and sale of SMART Yield bonds, a structured crypto asset security.
The SEC noted that the defendants had marketed these bonds without proper registration, violating securities laws. The settlement includes BarnBridge yielding almost $1.5 million in proceeds from SMART Yield bond sales, and individual civil penalties of $125,000 for both Ward and Murray.
According to the SEC’s statement, SMART Yield pooled cryptocurrencies from investors to generate returns for paying investors. The SEC’s investigation revealed that Ward and Murray actively promoted SMART Yield through social media and YouTube channels related to decentralized finance. This approach attracted investments exceeding $509 million from various investors.
The settlement serves to reinforce the SEC’s stance on the necessity for compliance within the blockchain and crypto space. Gurbir Grewal, the Attorney General of New Jersey, emphasized this point by highlighting the universal application of securities laws. Companies operating in this sector must navigate the evolving regulatory environment while being aware of their regulatory obligations.
