DeFi Protocol is held accountable by SEC for the first time in history
The US Securities and Exchange Commission (SEC), has accused a DeFi bill of raising more than $30 million from allegedly fraudulent offers of tokens.
This is the first time that the regulator presents a case related to the growing decentralized finance market.
According to a statement from the SEC on Friday (6), the Cayman Islands-based company Blockchain Credit Partners sold tokens that should have been registered with the regulatory agency.
In addition, the SEC sued two of its top executives, Gregory Keough and Derek Acree, for misleading investors about the operations and profitability of the business.
According to the regulator, the Florida duo illicitly offered bonds through the DeFi Money Market (DMM) platform. Sales took place between February 2020 and February 2021.
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“Full and honest disclosure remains the cornerstone of our securities laws – no matter what technologies are used to offer and sell those securities,” SEC Chief Audit Gurbir Grewal said in a statement.
The SEC claims that more than $31 million worth of mTokens and DMG tokens were sold through DMM. According to the regulator, mTokens promised a return on investment (ROI) of more than 6.25%.