Sushi DAO to Set up Defense Legal Defense Fund; Project Receives Unspecified US SEC Subpoena

Sushi, the Web3 exchange that pivoted into a decentralized autonomous organization (DAO), is seeking to organize a legal defense fund. If approved, the proposal, which already is available for voting, will put $3 million USDT as part of a fund to defend itself from legal actions against the organization and its members.

Timeline of Sushiswap

The Securities and Exchange Commission (SEC) has issued a subpoena to Sushi DAO and its “head chef,” Jared Grey, as part of the regulator's ongoing efforts to scrutinize the decentralized finance (DeFi) industry and cryptocurrencies. The news was announced in a blog post on the Sushi Forum.

The Securities and Exchange Commission has served a subpoena on the Sushi DAO and its Head Chef Jared Grey. SEC after a DEX scalp The SEC is continuing its enforcement push on crypto, targeting some of the more important infrastructure in the crypto ecosystem.

What comes as a shocker for the crypto market, leading decentralized exchange (DEX), SushiSwap and its Head Chef Jared Grey, have been served with a subpoena by the U.S. SEC recently. The team is currently in the process of having discussions with the financial watchdog and has refrained from commenting publicly about the ongoing investigation.

The United States Securities and Exchanges Commission (SEC) has taken a swing at yet another crypto-entity. This time around the commission has issued a subpoena against SushiSwap – a decentralized exchange.

Even though DEXs have gained popularity after FTX's collapse, the competition within the sector has increased too. SushiSwap is one of the DEXs that has struggled to outperform its competitors during this period.

According to data provided by Messari, the fees on DEXs have drastically reduced over time. This decline in fees would help DEXs such as Uniswap, Curve, and SushiSwap attract more users to their respective protocols.

Veteran analyst and trader Avi Felman, head of the digital asset trading arm in GoldenTree Asset Management investing heavyweight, explains why he is highly enthusiastic about the macro prospects of SushiSwap (SUSHI).

In the case of SushiSwap and the Sei Network, the benefit for both firms is quite clear and besides growing its influence, the former will use the partnership to generate a new revenue stream for the protocol.

According to a proposal by SushiSwap, the firm will be redirecting 100% of its trading fees to the Treasury. This comes after the firm revealed plans to multiply their 2023 earnings.

On 24 January, DeFiLlama revealed that the trading volume of SushiSwap [SUSHI] on Arbitrum was steadily increasing. As per the tweet, on 23 January, 44.6% of the total SushiSwap trading volume occurred on Arbitrum.