BarnBridge DAO attorney Douglas Park advised the decentralized autonomous organization (DAO) to cease operations amid an investigation by the SEC.
Park said there is a need to shut down existing liquidity pools in the BarnBridge protocol and halt the creation of new ones.
The attorney did not specify the reason for the SEC’s investigation.
He added that work on products related to the platform should be halted. In his view, this would help reduce legal exposure in the future.
Co-founder Tyler Ward confirmed Park’s remarks but did not offer extensive comments.
One of the BarnBridge Discord channel users suggested that the commission’s investigation could be used as a pretext for an exit scam. Ward rebutted this.
The project’s BOND token fell on the news. According to CoinGecko, it is trading at $3.03, down 10.1% in the last 24 hours.
Earlier in June, the SEC filed a lawsuit against cryptocurrency exchanges Binance and Coinbase.
Commissioner Hester Peirce noted the harm from the agency’s contradictory stance on cryptocurrency regulation.