Sushi DAO proposed allocating $3 million for legal expenses after subpoenas from the SEC

SushiSwap chief Jared Grey предложил Sushi DAO создать фонд правовой защиты в размере $3 млн после получения им и организацией повесток от Комиссии по ценным бумагам и биржам США (SEC).

Grey noted that in March 2022 sought to establish a legal framework to reduce risks for the DAO and its members.

“Nevertheless it became clear that, to meet the legal needs of ensuring business continuity and protecting the core participants, funds must be available,” he noted.

The head of the DEX did not disclose details of the regulator’s subpoenas that had recently been received.

“We are cooperating with the SEC and do not intend to publicly comment on ongoing investigations or other legal issues,” Grey said.

According to the proposal, the fund will cover “reasonable attorney fees and expenses”.

Funds will be held in a multi-signature wallet and allocated to legal representation as needed until the proceedings are concluded.

Grey proposed funding the structure from the following sources:

• treasury funds (one-time payment) — 50%;
• grants from the project’s business-unit revenues — 35%;
• sale of SUSHI tokens — 15%.

“We believe that such a breakdown reduces the financial burden while still providing the necessary funds to cover legal costs, safeguarding Sushi DAO’s financial solvency and meeting the pressing need for representation,” he emphasised.

In the event the fund is exhausted, the DAO will reserve an additional $1 million for unforeseen expenses.

In October 2022, took the helm of SushiSwap, winning the DAO vote by a wide margin over rivals.