Sushi, the decentralized autonomous organization (DAO) behind the popular SushiSwap decentralized exchange, has come under investigation by the U.S. Securities and Exchange Commission (SEC). Sushi Head Chef Jared Grey confirmed that he received a subpoena from the SEC last month, seeking documents and information related to Sushi.
Grey’s official SEC statement and FAQ reveals that the SEC’s investigation is a non-public, fact-finding inquiry trying to determine whether there have been any violations of the federal securities laws and that no conclusions have been made. Grey is cooperating with the SEC’s subpoena, and his employer, Internet Three Software Company, is also responding to the subpoena voluntarily to cooperate with the investigation.
Grey has retained Jason Gottlieb of Morrison Cohen LLP to represent him in response to the SEC’s subpoena. Morrison Cohen represents only Grey and his employer in connection with the SEC’s investigation concerning Sushi. The law firm has extensive experience representing companies and individuals in response to regulatory and law enforcement investigations, particularly in the digital assets and cryptocurrency space.
The investigation will inevitably cost money, and Grey has proposed to create the Sushi Legal Defense Fund, which will provide coverage for reasonable attorneys’ fees and costs for core contributors and multisig participants active since the ratification of Sushi 2.0 to the present. The fund’s amount is set at 3 million USDT, with provisions for total available funds of 5 million USDT to ensure adequate funds to protect the above-mentioned contributors.
Grey’s official statement and FAQ stresses that the investigation does not mean that the SEC has concluded that Grey, Internet Three Software Company, or Sushi has violated any law. The SEC’s investigation is a non-public, fact-finding inquiry trying to determine whether there have been any violations of the federal securities laws.
To the best of Grey’s knowledge, the SEC has not (as of this writing) made any conclusions that anyone affiliated with Sushi has violated United States federal securities laws. Therefore, Grey cannot predict the outcome of the investigation or whether other entities or individuals have been served with a subpoena related to Sushi.
In deference to the SEC’s process, neither Grey nor his counsel can share more information about the documents or information sought in the SEC’s subpoena. Grey can only produce documents and information in his own possession, custody, or control. Sushi, as a DAO, consists of a software protocol and people around the world who use it in various ways. Grey can advocate for the interests of the Sushi community but cannot possibly “represent” the entire community.
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- The SEC Served SushiSwap And Its CEO With A Subpoena