Members of the BarnBridge DAO have been instructed to halt “all work” on the project in response to a rumored investigation by the SEC. A lawyer named Douglas Park, representing the autonomous decentralized organization informed users of the news in a message on the platform’s Discord channel on July 6.
The SEC is looking into BarnBridge DAO along with those connected to the DAO, I’m letting you know,” Park added. Park proposed that all the work on BarnBridge DAO-related goods should cease, including the closing of certain liquidity pools, to “reduce potential further legal liability,” and that people shouldn’t be paid for work resulting from the efforts of investment.
Several Members Of BarnBridge DAO Have Voiced Their Concern Regarding The Announcement
Soon after Tyler Ward, co-founder of BarnBridge DAO, who is likely known as “Lord Tyler” on Discord, verified Park’s post was accurate.
Ward and Park failed to address the SEC’s investigation in BarnBridge DAO. The probe is “non-public” and “ongoing” according to Park, thus only a limited amount of material may be disclosed. 100% of the holders of BarnBridge tokens cast votes between July 3 and June 30 on a pitch to hire managing partner Park’s law firm, Park & Dibadj, as legal aid for the BarnBridge DAO for all sorts of legal work.
201,000 of the 214,000 votes cast—or 93.3%—came from their wallet. The date of the request and its topic might indicate that the SEC started looking into the DAO before 30th June. However, several members of DAO have voiced concerns with the announcement. One Discord user indicated that BarnBridge’s founders would be using the SEC investigation as justification for facilitating an “exit plan” to possibly cheat investors and demanded supporting documentation for the inquiry.