BarnBridge DAO Settles with SEC Over Unregistered Crypto Asset Offering

Shraddha Sharma
December 23, 2023
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The Securities and Exchange Commission (SEC) has announced a settlement with BarnBridge DAO and its founders, Tyler Ward and Troy Murray in another enforcement action.

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BarnBridge DAO will pay $1.7 million

In a statement on Friday, the SEC said the decentralized autonomous organization and its founders will pay over $1.7 million for failing to register the offer and sale of their structured crypto asset securities, known as SMART Yield bonds.

Gurbir S. Grewal, the Director of the SEC’s Division of Enforcement, emphasized the applicability of securities laws to all market participants, including those claiming decentralization or autonomy. He stated, “The use of blockchain technology for the unregistered offer and sale of structured finance products to retail investors runs afoul of the securities laws.”

The regulator said that BarnBridge’s SMART Yield bonds were marketed as asset-backed securities and offered to the public.

The SEC’s findings indicate that the SMART Yield bonds attracted over $509 million in investments. BarnBridge also earned fees based on the investment size and the chosen yield by each investor.

The parties have neither admitted nor denied the SEC’s findings but have agreed to cease-and-desist orders.

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SEC actions against issuers and trading platforms

The SEC has been prompt with its enforcement action against decentralized organizations and crypto issuers. Notable cases include actions against Kraken and Coinbase for operating unregistered exchanges. Binance and Bittrex faced similar charges, highlighting the SEC’s focus on ensuring compliance with securities laws.

The SEC’s crackdown on fraudulent activities and unregistered offerings has been extensive. High-profile cases include charges against Woodbury and Holverson in the CoinDeal scheme and Richard Heart’s Hex, PulseChain, and PulseX for unregistered offerings.

The SEC has also targeted insider trading and market manipulation within the crypto market. This includes charges against former Coinbase manager Wahi and others for insider trading. Terraform Labs and its founder Do Hyeong Kwon were charged with orchestrating a multi-billion dollar fraud. Samuel Bankman-Fried was also charged with defrauding equity investors in FTX.

Also Read: SEC and FSS to Discuss Cryptocurrency Regulations in January

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Shraddha's professional journey spans over five years, during which she worked as a financial journalist, covering business, markets, and cryptocurrencies. As a reporter, she has placed particular emphasis to learn about the market interaction with emerging technologies.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.