{"id":340857,"date":"2023-07-07T17:35:44","date_gmt":"2023-07-07T16:35:44","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=340857"},"modified":"2023-07-07T15:29:52","modified_gmt":"2023-07-07T14:29:52","slug":"crypto-community-questions-sec-probe-into-defi-protocol-barnbridge","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/crypto-community-questions-sec-probe-into-defi-protocol-barnbridge\/","title":{"rendered":"Crypto community questions SEC probe into DeFi protocol BarnBridge"},"content":{"rendered":"<p>DeFi protocol BarnBridge <a href=\"https:\/\/twitter.com\/Barn_Bridge\/status\/1677110787780018176?s=20\">said<\/a> the U.S. Securities and Exchange Commission (SEC) is investigating its decentralized autonomous organization (DAO) and team member, according to a July 7 tweet.<\/p>\n<p>To reduce the protocol's legal liability, Douglas Park, BarnBridge DAO's elected legal counsel, advised that the protocol should cease the creation of new pools, and old liquidity pools should be closed.<\/p>\n<p>Additionally, Park stated that all work on BarnBridge-related products should stop, adding that people would no longer be compensated for any work concerning the protocol until further notice.<\/p>\n<p>Park noted that the SEC's investigation was ongoing and non-public, constraining him from sharing further information.<\/p>\n<p>According to its <a href=\"https:\/\/docs.barnbridge.com\/\">website<\/a>, BarnBridge is a decentralized finance (DeFi) protocol that allows users to earn a fixed return on their crypto asset deposits<span data-slate-fragment=\"JTdCJTIyb2JqZWN0JTIyJTNBJTIyZG9jdW1lbnQlMjIlMkMlMjJkYXRhJTIyJTNBJTdCJTdEJTJDJTIybm9kZXMlMjIlM0ElNUIlN0IlMjJvYmplY3QlMjIlM0ElMjJibG9jayUyMiUyQyUyMnR5cGUlMjIlM0ElMjJwYXJhZ3JhcGglMjIlMkMlMjJpc1ZvaWQlMjIlM0FmYWxzZSUyQyUyMmRhdGElMjIlM0ElN0IlN0QlMkMlMjJub2RlcyUyMiUzQSU1QiU3QiUyMm9iamVjdCUyMiUzQSUyMnRleHQlMjIlMkMlMjJsZWF2ZXMlMjIlM0ElNUIlN0IlMjJvYmplY3QlMjIlM0ElMjJsZWFmJTIyJTJDJTIydGV4dCUyMiUzQSUyMmRlY2VudHJhbGl6ZWQlMjBwcm90b2NvbCUyMHRoYXQlMjBhbGxvd3MlMjB1c2VycyUyMHRvJTIwZWFybiUyMGElMjBmaXhlZCUyMHJldHVybiUyMG9uJTIwdGhlaXIlMjBkZXBvc2l0cyUyMCUyMiUyQyUyMm1hcmtzJTIyJTNBJTVCJTVEJTJDJTIyc2VsZWN0aW9ucyUyMiUzQSU1QiU1RCU3RCU1RCUyQyUyMmtleSUyMiUzQSUyMmFjNDJlNzc1ODNkMDRiZTM4ZmM3MzJhOTczNTZmOGEyJTIyJTdEJTVEJTJDJTIya2V5JTIyJTNBJTIyODQ0ZWNkNzA0ZDRkNDIzODgxOTIwNzJjNDZkZmY1Y2QlMjIlN0QlNUQlMkMlMjJrZXklMjIlM0ElMjI3OTc1ODhhM2IwYjI0NzIyOGI1YTBhNWY3NDhlZTRhZCUyMiU3RA==\">. At its November 2020 peak, the total value of assets locked on the protocol was nearly $600 million. However, it has since dropped to $1.35 million, according to DeFillama <a href=\"https:\/\/defillama.com\/protocol\/barnbridge\">data<\/a>.<\/span><\/p>\n<figure id=\"attachment_340883\" aria-describedby=\"caption-attachment-340883\" style=\"width: 1564px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-340883\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/07\/Screenshot-2023-07-07-143841.jpg\" alt=\"BarnBridge SEC\" width=\"1564\" height=\"561\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/07\/Screenshot-2023-07-07-143841.jpg 1564w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/07\/Screenshot-2023-07-07-143841-300x108.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/07\/Screenshot-2023-07-07-143841-1024x367.jpg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/07\/Screenshot-2023-07-07-143841-768x275.jpg 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/07\/Screenshot-2023-07-07-143841-1536x551.jpg 1536w\" sizes=\"(max-width: 1564px) 100vw, 1564px\" \/><figcaption id=\"caption-attachment-340883\" class=\"wp-caption-text\">Source: DeFillama<\/figcaption><\/figure>\n<p>Meanwhile, BarnBridge's <a href=\"https:\/\/cryptoslate.com\/coins\/barnbridge\/\">BOND<\/a> tokens declined by nearly 9% to $3.01 at the time of writing, according to <em>CryptoSlate's<\/em> data.<\/p>\n<h2>Community criticize\u00a0 SEC<\/h2>\n<p>The crypto community has heavily criticized the SEC's action against the relatively unknown DeFi protocol.<\/p>\n<p>AaveChan founder Marc Zeller <a href=\"https:\/\/twitter.com\/lemiscate\/status\/1677282898804654080?s=20\">said<\/a> the financial regulator move sends the clearest signal that &#8220;it is safer to be an offshore scammer than an honest builder with a U.S. passport.&#8221;<\/p>\n<p>Members of the crypto community have interpreted the SEC's investigation into BarnBridge as a sign that the regulatory body isn't focusing <a href=\"https:\/\/twitter.com\/Lorrain29922745\/status\/1677219635521900544\">solely<\/a> on major organizations in the cryptocurrency sector and are also questioning the possibility of <a href=\"https:\/\/twitter.com\/KoomoKumo\/status\/1677128862248079361?s=20\">forking<\/a> the project without any undesirable elements.<\/p>\n<p>Over the past month, the SEC has increased its scrutiny of the crypto industry, filing <a href=\"https:\/\/cryptoslate.com\/market-reports\/how-sec-legal-battles-with-binance-coinbase-could-reshape-crypto\/\">legal actions<\/a> against major crypto firms, Coinbase and Binance. The regulator has\u00a0<a href=\"https:\/\/cryptoslate.com\/sec-sues-coinbase-for-multiple-alleged-securities-law-violations\/\">labeled<\/a> over 60 cryptocurrencies securities and <a href=\"https:\/\/cryptoslate.com\/sec-chair-gensler-highlights-crypto-firms-non-compliance-in-house-committee-testimony\/\">highlighted<\/a> the noncompliance of crypto firms with existing securities law.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>DeFi protocol BarnBridge said the U.S. Securities and Exchange Commission (SEC) is investigating its decentralized autonomous organization (DAO) and team member, according to a July 7 tweet. To reduce the protocol&#8217;s legal liability, Douglas Park, BarnBridge DAO&#8217;s elected legal counsel, advised that the protocol should cease the creation of new pools, and old liquidity pools [&hellip;]<\/p>\n","protected":false},"author":720,"featured_media":340885,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46940,11],"tags":[75597,74981],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Crypto community questions SEC probe into DeFi protocol BarnBridge<\/title>\n<meta name=\"description\" content=\"DeFi protocol BarnBridge is halting operations to limit legal liability because of the U.S. SEC&#039;s probe of its DAO and team members.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/crypto-community-questions-sec-probe-into-defi-protocol-barnbridge\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Crypto community questions SEC probe into DeFi protocol BarnBridge\" \/>\n<meta property=\"og:description\" content=\"DeFi protocol BarnBridge is halting operations to limit legal liability because of the U.S. SEC&#039;s probe of its DAO and team members.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/crypto-community-questions-sec-probe-into-defi-protocol-barnbridge\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2023-07-07T16:35:44+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-07-07T14:29:52+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/07\/sec-barnbridge.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Oluwapelumi Adejumo\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Oluwapelumi Adejumo\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/crypto-community-questions-sec-probe-into-defi-protocol-barnbridge\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/crypto-community-questions-sec-probe-into-defi-protocol-barnbridge\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#person\",\"name\":\"Oluwapelumi Adejumo\",\"url\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/profile-photo-oluwapelumi-adejumo-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/profile-photo-oluwapelumi-adejumo-300x300.jpg\",\"caption\":\"Oluwapelumi Adejumo\"},\"jobTitle\":\"Senior Reporter\",\"description\":\"Oluwapelumi values Bitcoin's potential. 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