Sushi DAO, which has evolved into a decentralized autonomous organisation (DAO), is now setting up a legal defence fund. The proposal, which has received 75% of the vote, will contribute $3 million USDT towards a fund that can protect the organization and its members from any legal action taken against it. The The organization revealed that it was recently served with a subpoena by the U.S. Securities And Exchange Commission (SEC).
Sushi DAO Proposes Creation of Legal Defense Fund
Sushi DAO, a Web3 platform and staking platform, is rallying support for the formation of a legal defence fund. The proposal, if accepted, would provide the organization access to $3 million USDT to assist its keepers in defending against legal and other demands. The fund would be generated from 50% of the DAO’s treasury, which is made up of Sushi Fees and from the reserve to be used for grants. The The organization would be required to repay the initiative with an additional $1 Million USDT.
Undisclosed SEC Subpoena Received
Jared Gray, the head chef of Sushi DAO, disclosed that he had received a subpoena from the SEC but did not reveal the nature or the details of the case. When When asked about the matter, Gray stated:
Unfortunately, I can only provide public information about what was mentioned in the post. That is standard practice. Many DAOs are obliged to implement or will have to implement a Legal Defense Fund for contributors.
Sushi follows in the footsteps of Makerdao, whose legal fund was established in December to cover up to 5,000,000 DAI. However, Makerdao’s proposal is more detailed and includes definitions for beneficiaries and claims, as well as periods to make payments and determine eligibility for these protections.
This is not the first time a U.S. government agency has taken legal action against a DAO. Last September, the Commodity Futures Trading Commission (CFTC) alleged that Ooki DAO had illegally offered trading services to U.S. citizens without having registered as a Designated Contract Market (DCM). The Ooki DAO case is still ongoing.
What are your thoughts on Sushi DAO setting up a legal defence fund to protect the DAO and head chef Jared Gray? Please leave a comment below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is intended for informational purposes only. It does not constitute an offer or solicitation for a sale or purchase, nor a recommendation or endorsement of any product, service, or company. Bitcoin.com does NOT provide advice on investment, tax, legal, and accounting matters. Neither the company nor the author are responsible for any damage or loss resulting from or in connection to the use of this content, goods, services, or recommendations.
