Sushi sets up legal defense fund after SEC subpoenas head chef Jared Grey and DAO itself

May 26, 2023 | Derek Andersen

On March 21st, in response to a subpoena from the Securities and Exchange Commission against Jared Karan, who is responsible for sushi, and the decentralized Autonomous Organization (DAO) itself, sushi Road proposed the establishment of a legal defense fund.

DAO's proposal did not provide small details about the SEC subpoena. The company believes it is working with SEC, "people are not prepared to release comments on ongoing research or other legal problems." A member of the community team commented:

"how can sushi get a subpoena? I know people, but sushi is a knife. [.] How did they get the knife? Can you put pressure on everyone to arrest Jared [Karan]? There is no letter in my mailbox. Like all others, I am Tao.

The company's headquarters in Japan Sushi Road uses sushi (sushi) dynamic password to operate SushiSwp decentralized trading center. DAO repositioned sushi token economics at the end of last year after losing $30 million in 2022 to encourage liquidity providers.

A new proposal proposes to invest $3 million in the fund, with an additional $1 million if needed. Sushi sales will pay 15% of the fund. It stressed that Dao, the producer, offered a similar fund in December. Sushi first established a legal defense fund in March 2022, with funds ranging from $85000 to $100000.

Sushi is understood to be the DAO that the SEC successfully targeted its overall goal during the tenure of Gary Gensler as chairman, although the agency has been widely seen as a tough crackdown on login passwords for nearly six months. It's all focused on chips, especially on custody. Now in February, SEC drove Kraken, a centralized trading center, to stop offering chip services to American customers. The Kraken paid a penalty of $30 million.