Jared Gray the “chef” (CEO) of automated market maker Sushi Swap is trying to build a $3 million legal defense fund after being subpoenaed by the U.S. Securities and Exchange Commission (SEC).
Gray declined to comment further on the ongoing investigation, but said he and Suzy were cooperating with the agency. In a blog post on Tuesday, Gray said the new Sushi Dao legal defense fund will pay "reasonable attorneys' fees" for core contributors who have been active since Sushi 2.0 was approved.
Funding for the DAO will be raised through a combination of Kanpai fees (50%) grants (35%) and the SUSHI token sale (15%). SUSHI fell 2.34% on the day. $3 million in USDT will be held in a new multisig whose funds will be used to pay legal fees as needed. “The international regulatory environment for DAOs is still in flux, and contributor insurance policy options remain limited,” Gray wrote. "It is clear that funding must be available to deal with the legal requirements for operational continuity and to protect core contributors."
A DAO is a decentralized autonomous organization, theoretically governed in a decentralized manner by token holders with voting rights. However, one commenter on Gray’s proposal asked how the Sushi DAO was “summoned” in the first place.
"I don't get any letters in my mail, I'm a Tao like any other member," he wrote.
Others called on Gray to "expose the lawlessness of the SEC" by releasing the agency's specific allegations against Sushi. The SEC has received numerous criticisms from crypto/industry-friendly politicians for its numerous lawsuits and investigations against crypto companies in an environment of regulatory uncertainty.
