SEC Attacks DeFi

in crypto •  last year 

SEC Attacking Smaller DeFi Projects, What's Happening?

Douglas Park, legal counsel for BarnBridge DAO, disclosed in an official statement that the SEC is investigating the project and its associates. To minimize potential legal liabilities, he advised the cessation of all work related to BarnBridge products, the closing of existing liquidity pools and a halt to any new pool creation until further notice.

The SEC's investigation into BarnBridge DAO signifies a broader regulatory push against DeFi and DAOs. Regulators may view the situation as an opportunity to set a legal precedent, leveraging smaller projects that might lack the resources to engage in prolonged legal battles.

Exactly! Bullies gotta bully the weak.

However, a lot of what passes as "DeFi" are just money-games of chicken, where the aim is to profit before the inevitable rugpull or drift to zero. Yes, Uniswamp's "yield farms spring to mind. These are actually delaying true innovations as they suck money in - and then out - leaving a bad taste in the mouth of the gullible.

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  ·  last year  ·  

And here's one thing defi does well = multiple-token swap pools

Been saying this for some years - got bored saying it.
It's simple and more efficient than tedious binary pools AND if you have a shitcoin, the pool will still work and yield some fees from swaps between the other two coins. Genius!

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https://cms.megaphone.fm/channel/NLWLLC2118417614?selected=NLWLLC2828384726
podcast
Rep. Ritchie Torres - Investigate Gary Gensler

  ·  last year  ·  

Some big movements going on...

  ·  last year  ·  

and back to Bitcoin...

  ·  last year  ·  

or...

but the protection racket is just so profitable!

  ·  last year  ·  

Just to add, I'm not saying BarnBridge is a "yield farm" scam, as the APR seems quite modest; just saying those kind of defi-scams should be targets - but they don't seem to be, as Unislops is a darling of Ethereum. Said enough!

  ·  last year  ·  

New bipartisan bill says DeFi project ‘controllers’ must follow KYC rules

According to a draft copy of the bill obtained by Blockworks, the Crypto Asset National Security Enhancement Act seeks to subject DeFi protocols to the same rules as other US-regulated financial intermediaries.

The bill would require anyone who “controls” a DeFi protocol to ensure there are anti-money laundering programs in effect and adhere to know-your-customer (KYC) policies. DeFi protocol controllers would also be responsible for reporting suspicious activity and make sure anyone blocked by sanctions is not using the protocol.

If there is not an identifiable controller of the protocol, the bill states that anyone who invests more than $25 million in developing the protocol would be held responsible.

that still leaves some cracks in the floorboards.

  ·  last year  ·  
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The SEC Chairman Gary Gensler asks for $109 million to regulate the crypto sector
https://en.cryptonomist.ch/2023/07/20/sec-gary-gensler-asks-109-million-regulate-crypto/

I thought he was already making a nice profit.

  ·  last year  ·  

video direct

  ·  last year  ·  

is this what you were looking for?


long thread

  ·  last year  ·  

Remember, that gary is talking to "you", only if you are an American retail investor.


wealthy people can just go offshore and forego the (non) protection of the SEC - and note that such protection is NOT optional, hence more akin to a protection racket.

  ·  last year  ·  

go on, Gary, sue the Eth...

  ·  last year  ·  

Never mind a BTC ETF... what if we get a disclosure?

  ·  last year  ·  

crypto-quake!
all the promises belong to us.

  ·  last year  ·  

Defi attacks itself...

DeFi Protocol Rodeo Finance Hacked; $1.53M of ETH Stolen

PeckShield later confirmed that the amount was 472 ETH, equalling $888,000, confirming a recalculation:

  ·  last year  ·  

Notice, although the hack netted just under $1m, the effect on Rodeo was more disastrous.

This latest breach has had a profound impact on Rodeo Finance, causing the total value locked (TVL) to nosedive from $20 million to less than $500.

A non-zero-sum game.

  ·  last year  ·  

yield farm ponzi... in reverse.
this is how TVLs are inflated with just one shitcoin per farm of pools.