BarnBridge DAO and its founders, Tyler Ward and Troy Murray, have agreed to pay over $1.7 million to settle charges brought by the Securities and Exchange Commission (SEC). The charges stem from the failure to register their structured crypto asset securities, known as SMART Yield bonds, which the SEC alleges violated securities laws.
The settlement includes BarnBridge yielding almost $1.5 million in proceeds from SMART Yield bond sales, as well as individual civil penalties of $125,000 for both Ward and Murray. The SEC accused the DAO and its founders of not registering the offer and sale of SMART Yield bonds, which pooled cryptocurrencies from investors to generate returns for paying investors.
The SEC’s investigation found that Ward and Murray extensively promoted SMART Yield, comparing it to asset-backed securities, through social media and appearances on YouTube channels related to decentralized finance. This marketing approach attracted investments exceeding $509 million from various investors.
In light of this settlement, the SEC emphasizes the importance of compliance within the blockchain and crypto space. The regulatory environment is evolving, and companies operating in this sector must be aware of their regulatory obligations.
In other news, stablecoin issuer Paxos has expanded its stablecoin issuance to the Solana blockchain, marking its second blockchain integration after Ethereum. Paxos plans to integrate its Pax Dollar (USDP) stablecoin with Solana on January 17, 2024. This expansion is seen as a significant milestone for Paxos, as it aims to make stablecoins more accessible for everyday consumers.
Paxos is regulated in the US by the New York Department of Financial Services (NYDFS) and in Singapore by the Monetary Authority of Singapore (MAS). The company has received regulatory approvals for stablecoin issuance in Abu Dhabi and has previously issued other stablecoins such as PayPal USD (PYUSD) and Pax Gold (PAXG).
It’s worth noting that Paxos had to halt issuance of the Binance USD (BUSD) stablecoin following an order from the NYDFS. The company later ended its relationship with crypto exchange Binance.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Troy Murray, Tyler Ward |
| Companies | Monetary Authority of Singapore (MAS), BarnBridge DAO, Paxos, New York Department of Financial Services (NYDFS), Securities and Exchange Commission (SEC) |
| Currencies | BUSD, US Dollar, PayPal USD, Pax Dollar, PAX Gold |
| Securities | None |
