Sushi forks out $3M to shoulder SEC charges

Jared Grey, the Sushi “Head Chef,” proposes that Sushi DAO make available a legal defense fund of 3M USDT, following the subpoena served to Sushi and Jared Grey by the Securities and Exchange Commission (SEC). As Sushi moved to establish a legal entity aimed at reducing the liability for contributors and the DAO, “it has become evident funds must be available to handle legal needs for operational continuity and to protect core contributors,” Jared Grey said.

The proposed Sushi DAO Legal Defense Fund of 3M USDT is intended to cover attorneys’ fees and costs for core contributors; this category according to Grey are active contributors from the ratification of Sushi 2.0 to date. 

Grey stated that funds would minimize the financial burden and also provide the needed funds for legal expenses, protect Sushi DAO’s financial solvency, and address the immediate need for representation.

He affirmed that Sushi is cooperating with the SEC, however, the firm “do not intend to comment publicly on ongoing investigations or other legal matters,” Grey added.

Specifically, the proposal clause brackets that “the Legal Defense Fund will make ongoing payments until legal proceedings conclude,” also, “If a contributor resigns or is terminated: The Legal Defense Fund will make ongoing payments until legal proceedings conclude.”

According to Grey, the proposed 3M USDT will be kept in a new multisig, to make funds available for legal representation when needed. Additionally, funds will come from Kanpai fees (lump sum): 50%, Grants (BD revenue): 35%, and Sushi (TWAP market sales): 15% all combined.

Moreso, if there is a case where the funds run out before the proceedings conclude, Grey stated that the DAO will make 1M USDT available. He added that “the DAO will receive financial disclosures per the Governance Dashboard (coming Q2 23).”

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