{"id":92297,"date":"2025-12-17T10:50:49","date_gmt":"2025-12-17T07:50:49","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=92297"},"modified":"2025-12-18T08:29:56","modified_gmt":"2025-12-18T05:29:56","slug":"sec-ends-probe-into-defi-protocol-aave","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/sec-ends-probe-into-defi-protocol-aave\/","title":{"rendered":"SEC Closes Investigation Into DeFi Protocol Aave"},"content":{"rendered":"<p>The US Securities and Exchange Commission has concluded a four-year investigation into the lending platform <a href=\"https:\/\/forklog.com\/en\/news\/what-is-aave\">Aave<\/a>, according to its founder, Stani Kulechov.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">After four years, we are finally ready to share that the SEC has concluded its investigation into the Aave Protocol.<\/p>\n<p>This process demanded significant effort and resources from our team, and from me personally as the founder, to protect Aave, its ecosystem, and DeFi more\u2026 <a href=\"https:\/\/t.co\/aZeLrZz5ZQ\">pic.twitter.com\/aZeLrZz5ZQ<\/a><\/p>\n<p>\u2014 Stani.eth (@StaniKulechov) <a href=\"https:\/\/twitter.com\/StaniKulechov\/status\/2000963157150388267?ref_src=twsrc%5Etfw\">December 16, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cIn recent years the decentralised finance sector has faced unfair regulatory pressure. We are glad to leave this behind as we enter a new era in which builders can truly create the future of finance. <\/em><a href=\"https:\/\/forklog.com\/en\/news\/what-is-decentralised-finance-defi\"><em>DeFi<\/em><\/a><em> will win,\u201d he wrote. <\/em><\/p>\n<\/blockquote>\n<p>On the news, the AAVE token rose as much as 3% before easing 1.1% to $185.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"600\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-987deb513821cf06-1173976888409616-1024x600.png\" alt=\"image\" class=\"wp-image-271884\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-987deb513821cf06-1173976888409616-1024x600.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-987deb513821cf06-1173976888409616-300x176.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-987deb513821cf06-1173976888409616-768x450.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-987deb513821cf06-1173976888409616-1536x900.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/img-987deb513821cf06-1173976888409616.png 1600w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Hourly chart AAVE\/USDT on Binance. Source: <a href=\"https:\/\/ru.tradingview.com\/chart\/?symbol=BINANCE%3AAAVEUSDT\">TradingView<\/a>. <\/figcaption><\/figure>\n<p>The closure of the Aave case is part of a broader normalisation between the regulator and the crypto industry under the new US administration of Donald Trump. According to <a href=\"https:\/\/forklog.com\/en\/news\/trump-to-review-case-of-convicted-samourai-wallet-co-founder\">The New York Times<\/a>, since January 2025 the SEC has paused or ended 60% of investigations into crypto projects.<\/p>\n<h2 class=\"wp-block-heading\">Its most successful year<\/h2>\n<p>Aave\u2019s CEO called 2025 the most successful year in the project\u2019s history.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"zxx\" dir=\"ltr\"><a href=\"https:\/\/t.co\/s1ozjoYDyX\">https:\/\/t.co\/s1ozjoYDyX<\/a><\/p>\n<p>\u2014 Stani.eth (@StaniKulechov) <a href=\"https:\/\/twitter.com\/StaniKulechov\/status\/2001036446098919461?ref_src=twsrc%5Etfw\">December 16, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Net deposits reached a record $75bn. Over five years since launch the protocol processed $3.3trn in payments and originated more than $1trn in loans. All this puts Aave alongside the 50 largest banks in the US, Kulechov stressed.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"693\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-1cb0932dc0bda99f-1174003725783123-1024x693.png\" alt=\"image\" class=\"wp-image-271885\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-1cb0932dc0bda99f-1174003725783123-1024x693.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-1cb0932dc0bda99f-1174003725783123-300x203.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-1cb0932dc0bda99f-1174003725783123-768x520.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-1cb0932dc0bda99f-1174003725783123.png 1342w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Source: X. <\/figcaption><\/figure>\n<p>The project now controls 59% of the DeFi lending market and accounts for 61% of all active loans in the sector.<\/p>\n<p>In 2025 Aave generated $885m in fees, equal to 52% of all revenues among lending protocols.<\/p>\n<h2 class=\"wp-block-heading\">Aave\u2019s plans<\/h2>\n<p>Kulechov also outlined plans for 2026. Development will proceed along three pillars: Aave V4, Horizon and Aave App.<\/p>\n<p>Aave V4 is a major upgrade to improve the protocol\u2019s architecture via a <span data-descr=\"Hub and Spoke\" class=\"old_tooltip\">Hub and Spoke<\/span> model: <\/p>\n<ul class=\"wp-block-list\">\n<li>Hub \u2014 a single cross-network liquidity pool acting as a central vault for all assets;<\/li>\n<li>Spoke \u2014 specialised, configurable markets (for example, for a specific institution or asset class) that borrow liquidity from the Hub. <\/li>\n<\/ul>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201c[The upgrade] will enable Aave to process trillions of dollars\u2019 worth of assets, making the protocol the preferred choice for any institution, fintech or company seeking access to deep, reliable liquidity,\u201d Kulechov noted. <\/em><\/p>\n<\/blockquote>\n<p>The second pillar \u2014 Horizon \u2014 targets transforming Aave into the central venue for decentralised financing of <a href=\"https:\/\/forklog.com\/en\/news\/what-are-rwas-real-world-assets\">RWA<\/a>. The strategy is to onboard traditional-finance players directly.<\/p>\n<p>The project aims to lift net deposits from $550m to $1bn. According to the founder, deeper collaboration with Circle, Ripple, Franklin Templeton and VanEck will help achieve this.<\/p>\n<p>The third strategic pillar is Aave App, a mobile application launched in November. Kulechov called it a \u201cTrojan horse\u201d designed to hide complex blockchain infrastructure behind a simple interface and push DeFi into the mainstream. <\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cAt the beginning of next year we will begin the full-scale launch of Aave App and set out on the path to our first million users. This will directly spur growth of the Aave protocol through a completely new and untapped market. Aave cannot scale to trillions of dollars without mass product-level adoption,\u201d he said. <\/em><\/p>\n<\/blockquote>\n<h2 class=\"wp-block-heading\">Disputes<\/h2>\n<p>An <a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-dao-decentralised-autonomous-organisation\">DAO<\/a> participant in Aave under the handle tulipking <a href=\"https:\/\/governance.aave.com\/t\/aave-improvement-proposal-aip-the-poison-pill\/23609\">proposed<\/a>, via a <a href=\"https:\/\/www.investopedia.com\/terms\/p\/poisonpill.asp\">\u201cpoison pill\u201d<\/a> lawsuit, transferring full control over Aave Labs\u2019 intellectual property and assets to the decentralised organisation.<\/p>\n<p>The goal is to prevent a \u201cstealth privatisation\u201d of the protocol and return all created value to AAVE holders.<\/p>\n<p>The trigger was Aave Labs\u2019 unilateral decision to integrate the CoW Swap aggregator, which redirected front-end fees to a private company wallet. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Aave Labs is partnering with <a href=\"https:\/\/twitter.com\/CoWSwap?ref_src=twsrc%5Etfw\">@CoWSwap<\/a> to provide an improved swap experience across <a href=\"https:\/\/t.co\/uaJ3qsRWMw\">https:\/\/t.co\/uaJ3qsRWMw<\/a>.<\/p>\n<p>Swaps will now have better prices via CoW Swap&#8217;s solver and protection against MEV attacks. <a href=\"https:\/\/t.co\/hlsVuWpLqO\">pic.twitter.com\/hlsVuWpLqO<\/a><\/p>\n<p>\u2014 Aave (@aave) <a href=\"https:\/\/twitter.com\/aave\/status\/1996591393817473247?ref_src=twsrc%5Etfw\">December 4, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cThis is a protective measure to save the DAO from a centralised takeover. By monetising the Aave brand, front end and user base without tokenholder approval, Aave Labs has essentially privatised an asset that should belong to the community,\u201d wrote tulipking. <\/em><\/p>\n<\/blockquote>\n<p>His proposal also includes: <\/p>\n<ul class=\"wp-block-list\">\n<li>returning all past revenues received by Aave Labs from products under the Aave brand;<\/li>\n<li>de facto expropriation of the company\u2019s corporate equity to turn it into a structure fully controlled by the DAO.<\/li>\n<\/ul>\n<p>Marc Zeller, founder of the Aave Chan Initiative, <a href=\"https:\/\/governance.aave.com\/t\/aave-cowswap-integration-tokenholder-questions\/23530\/16?page=2\">called<\/a> tulipking\u2019s initiative \u201cthe most important proposal in the protocol\u2019s governance history\u201d. In his view, the outcome will have long-term implications for the DAO model and the fundamental principles for valuing governance tokens. <\/p>\n<p>In a forum post Zeller also stressed that it remains unclear \u201cwho owns the Aave trademark\u201d. <\/p>\n<p>Kulechov <a href=\"https:\/\/governance.aave.com\/t\/aave-cowswap-integration-tokenholder-questions\/23530\/31?page=2\">confirmed<\/a> that the CoW Swap integration did change the revenue flow. However, he described previous remittances to the DAO treasury as a \u201cvoluntary contribution\u201d rather than a legal or procedural obligation.<\/p>\n<p>According to Aave\u2019s CEO, the switch to CoW Swap was driven by product improvement \u2014 better price execution and protection against <a href=\"https:\/\/forklog.com\/en\/news\/what-is-mev-in-ethereum\">MEV<\/a>. He also emphasised that Aave Labs, as the developer and front-end operator, has the legal right and even a duty to monetise its work.<\/p>\n<p>Even so, Kulechov agreed with community criticism, acknowledging that such a decision required prior discussion. <\/p>\n<p>In late October, the Aave community <a href=\"https:\/\/forklog.com\/en\/news\/aave-community-proposes-50-million-token-buyback-program\">proposed<\/a> launching a $50m token buyback funded by protocol revenues. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US SEC has concluded a four-year investigation into lending platform Aave, its founder said.<\/p>\n","protected":false},"author":1,"featured_media":92298,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"Founder Stani Kulechov outlined plans for 2026","creation_source":"ai_translated","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1212,80,1093,128],"class_list":["post-92297","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-aave","tag-dao","tag-defi","tag-sec"],"aioseo_notices":[],"amp_enabled":true,"views":"300","promo_type":"1","layout_type":"1","short_excerpt":"Founder Stani Kulechov outlined plans for 2026","is_update":"0","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/92297","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=92297"}],"version-history":[{"count":2,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/92297\/revisions"}],"predecessor-version":[{"id":92309,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/92297\/revisions\/92309"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/92298"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=92297"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=92297"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=92297"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}