SEC filed an accusation against a project that uses DeFi technology, involving an amount of more than $ 30 million

The SEC has charged what it described as a DeFi lender, Blockchain Credit Partners (DeFi Money Market), and two of its top executives for raising $30 million through allegedly fraudulent offerings. The case is the agency’s first involving securities using DeFi technology.

“According to the SEC’s order, Gregory Keough, Derek Acree, and their company Blockchain Credit Partners offered and sold securities in unregistered offerings through DeFi Money Market from February 2020 to February 2021. The order finds that they used smart contracts to sell two types of digital tokens: mTokens that could be purchased using specified digital assets and that paid 6.25 percent interest, and DMG “governance tokens” that purportedly gave holders certain voting rights, a share of excess profits, and the ability to profit from DMG governance token resales in the secondary market,” according to the SEC.

Without admitting or denying the SEC’s allegations, the respondents agreed to pay $12.8 million in disgorgement and a total of $300,000 in fines.

The DMG governance token has a market cap of roughly $3.1 million, according to CoinMarketCap.

SEC Commissioner Hester Peirce, who is lovingly known in the digital asset world as “Crypto Mom,” tweeted after the complaint’s release that it was a “DINO (decentralized in name only) project.”

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