Automated market maker (AAM), SushiSwap, tumbles as the United States Securities and Exchange Commission (SEC) served a subpoena to Sushi DAO and Jared Grey – Head Chef and CEO of Sushi Swap.
According to a March 21 blog post, in response to an SEC subpoena, Jared Grey is seeking to raise $3 million in USD Tether (USDT) as a legal defense fund to pay for “attorney fees” attributed to the vital contributor. Additionally, the Head Chef noted that DAO will integrate a further $1 million if the prior $3 million funding is exhausted.
However, amid cooperation with the SEC, Grey has yet to reveal the reason behind the summons. And added, “We do not intend to comment publicly on ongoing investigation or other legal matters.”
In a blog post, Head Chef Grey detailed the multiple sources of funds for DAO. As he said, Sushi will collect 50% as a lump sum amount from Kanpai fees, another 35% will come from Grants as BD revenue and the last 15% will come from Sushi (TWAP market sales).
Grey dedicatedly focuses on paying all the fees imposed by the SEC. “The legal Defense fund will make ongoing payments until legal proceedings conclude.”
This news affected SushiSwap‘s native token – SUSHI, which fell by almost 10.43% last night (22 March). At the time of writing, SUSHI token is trading at the $1.08 mark and its market capitalization is still down about 7% to $240.5 million.