DeFi Money Market closure after SEC probe could set rocky precedent

DeFi Money Market closure after SEC probe could set rocky precedent


The SEC’s recent inquiry into the Tim Draper-backed DeFi Money Market platform is the most recent example in a concerning trend of increasing action by regulators against unregistered securities.

As a result of regulatory inquiries, DMM is ceasing operations. mTokens can be redeemed with interest accrued to-date through the following link: https://t.co/mWB1WacKaH

— DMM DAO (@DMMDAO) February 5, 2021

It joins Kik Interactive, Ripple and Coinseed as crypto projects facing the wrath of regulators under  aspects of securities law.

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The mystery behind DeFi Money Market’s abrupt closure on Feb. 5 was unveiled in the project’s official Telegram channel on Feb. 9, in a statement that revealed the DeFi Money Market Foundation received an investigative subpoena from the United States Securities and Exchange Commission on December 15, 2020.

“We reviewed the subpoena carefully and with the assistance of counsel began complying with the legal requirement to produce documents and make other information available to the SEC,” the post said.

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