BarnBridge Hit with $1.7M SEC Fines Over Crypto Offerings
BarnBridge DAO and its founders recently faced penalties exceeding $1.7 million from the U.S. Securities and Exchange Commission (SEC).
Allegedly, they were involved in offering crypto asset securities without proper registration.
The SEC accused BarnBridge, a decentralized finance (DeFi) protocol, of promoting “SMART Yield bonds” as comparable to traditional asset-backed securities. These bonds were touted in BarnBridge’s white paper as combining the safety of conventional finance debt instruments with higher-than-usual returns.
Additionally, the SEC claimed that BarnBridge operated SMART Yield pools without registering as an investment company. Reportedly, these pools amassed over $509 million from investors.
Although BarnBridge neither admitted nor denied the SEC’s allegations, they agreed to surrender approximately $1.5 million obtained from the SMART Yield sales. Furthermore, the project’s co-founders, Tyler Ward and Troy Murray, agreed to pay $125,000 each in civil penalties.
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In a separate development, Coinbase ceased trading services for BOND, BarnBridge’s native asset, earlier in September. The exchange clarified that it regularly evaluates listed digital assets to ensure compliance with its listing criteria.
As of the latest update, BOND is being traded at $3.89, experiencing a nearly 4% increase in value over the past 24 hours, maintaining its position as the 661st-ranked cryptocurrency by market cap.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
