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.”
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.
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