DeFi Case Concluded, Here Are the Claims and Penalties

A First in the US Securities and Exchange Commission📢

The US SEC has reported that the DeFi lawsuit has been concluded.

The U.S. Securities and Exchange Commission has filed its first lawsuit regarding the DeFi market after a company allegedly sold tokens that required registration with the Wall Street regulator. The SEC, in a statement today, noted that it has filed and resulted in a lawsuit against Cayman Islands-based Blockchain Credit Partners and its two top executives for the illegal sale of securities.

📢US SEC's Claim
The US SEC has sued Blockchain Credit Partners and its two top executives for illegally selling securities through the DeFi Money Market platform from February 2020 to February 2021. The company raised $30 million in funding by selling two tokens that the SEC considers securities but must be registered.

SEC Director Gurbir Grewal said in a statement:

Full and honest disclosure remains a cornerstone of our securities laws. Whatever technologies are used to offer and sell the relevant securities, it must accept the rule of law.

The DeFi market has exploded recently, enabling investors, brokers, banks, cryptocurrency exchanges and other intermediaries to transact directly on the blockchain. While SEC Chairman Gary Gensler stated that cryptocurrencies need more regulation, he started to make statements about DeFi and continues.

Salvos from the SEC Chairman
The chairman reported this week that tokens that reflect stock price movements will likely need to register with the regulator and comply with investor protection rules. Such offers have been popular with DeFi platforms.

In May, Gensler invited the Senate to authorize the SEC to oversee crypto trading platforms. However, he promised to use the existing powers of the agency, which seeks to crash the industry through sanctions actions.

As a result, Gregory Keough and Derek Acree of Blockchain Credit Partners agreed to pay a $125,000 fine. In addition, executives and his company will pay $12.8 million in compensation. It should be noted that as a result of this lawsuit, the defendants did not accept or deny the allegations.