Sushi hit with SEC subpoena, seeking $3 million USDT legal defense fund

Quick Take

  • Sushi “head chef” Jared Grey is seeking a $3 million legal defense fund from Sushi DAO, after Sushi was hit with a subpoena from the Securities and Exchange Commission.
  • The legal defense fund would cover legal fees for Sushi’s core contributors.

The Securities and Exchange Commission recently served Sushi and "head chef" Jared Grey with a subpoena, the decentralized finance company said on Tuesday. 

Grey asked Sushi DAO to fund a $3 million USDT legal defense fund to cover costs related to the SEC’s inquiry. Sushi sought to establish a legal entity to reduce liability for contributors and the DAO last year. 

“We’re cooperating with the SEC,” Grey said in a blog post. “It has become evident funds must be available to handle legal needs for operational continuity and to protect core contributors.” 


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The SEC did not immediately respond to a request for comment, and Grey said Sushi does not “intend to comment publicly on ongoing investigations or other legal matters.”

The Sushi DAO Legal Defense Fund would cover “reasonable” attorney fees and costs for core contributors who have been active since the ratification of Sushi 2.0 last year. The funds will come from a combination of Kanpai fees, grants and Sushi. If the money runs out before the legal issues conclude, the DAO will make $1 million USDT available as needed.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.


About Author

Stephanie is a senior reporter covering policy and regulation. She is focused on legislation, regulatory agencies, lobbying and money in politics. Stephanie is based in Washington, D.C.


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