Sushi and its ‘head chef’ receive SEC subpoena

Mar. 21, 2023

By Mike Dalton

The SushiSwap group and its leader aim to create a $3 million legal defense fund.

DeFi project Sushi and its main leader have been subpoenaed by the U.S. Securities and Exchange Commission (SEC), according to a forum post on March 21.

Sushi subpoenaed by regulators

That forum post, published by Sushi “head chef” Jared Grey, indicates that both he and the project itself were recently served an SEC subpoena.

That post suggests establishing a $3 million legal fund to cover legal costs, funded with Tether’s USDT stablecoin and introduced through a DAO proposal.

Results from an early poll attached to Grey’s original forum post suggest that much of the community is in favor of such a legal fund, with 80% of 21 voters stating that they favor establishing the fund. However, that vote is not a decision from Sushi’s DAO.

The forum post gives few other details on the nature of the subpoena. The post says that Sushi will not comment further but that it is cooperating with the SEC.

The value of Sushi’s native cryptocurrency token (SUSHI) fell from $1.22 to $1.15 shortly after the news, representing a loss of approximately 6.5%.

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