Sushiswap DEX served with SEC subpoena
Sushiswap DEX is in deep trouble as their head developer has been served with SEC subpoena. This has called for a legal defense fund that will provide coverage for attorney fees. Amount if you may ask? $3M which will be sent for Kanpai fees, grants and sushi TWAP market sells.
It looks like Sushiswap will not be the first DEX to go. Uniswap, the popular decentralized cryptocurrency platform, is under investigation by the BaFin for potential violations of German financial regulations. In Germany, any financial service involving the custody or management of digital assets requires a license.
Uniswap is classified as a decentralized exchange (DEX), but the BaFin wants to determine if it is a true DeFi platform or if there is a party that requires licensing. Additionally, Uniswap’s app was recently banned from the Apple App Store due to regulatory issues. The outcome of the BaFin investigation is still unknown.
We are not sure what Sushiswap get subpoena? Perhaps, it was due to the rewards that were given to the holders for parking their Sushi tokens on the Sushiswap decentralized exchange. SEC is not too happy for this kind of free money. For the very same reason, they could be coming to Ethereum holders in USA as well.