Sushi’s Head Chef Releases Statement Over SEC Subpoena

Sushi DAO’s head chef, Jared Grey, has released a statement addressing the subpoena served against himself and the protocol by the United States Securities and Exchange Commission (SEC). 

In a Friday blog post on the Sushi Forum, Grey decided to address the growing concerns of the Sushi community using an FAQ format which he claims answers the most frequently asked questions he has received since the news about the SEC’s subpoena broke out. 

As part of its ongoing regulatory crackdown on the crypto space, the SEC served the Sushi DAO and its head chef a subpoena on Tuesday, March 21, indicating the commission was investigating both parties for violating U.S securities laws, presumably over SushiSwap’s native token – SUSHI. 

In response to the subpoena, Grey stated the protocol was cooperating with the SEC. However, the head chef requested the release of $3 million in USDT as a legal defense fund to cover the cost of any potential legal proceedings.

Jared Grey: We Have Not Violated Any Laws 

In the blog post released on Friday, Jared claims that neither he nor Sushi DAO has done anything wrong, according to the knowledge of himself and his legal counsel in person Jason Gottlieb of Morrison Cohen LP. 

When responding to an inquiry if the SEC shared the same belief with him, he said:

“The investigation does not mean that the SEC has concluded that Jared, Internet Three Software Company, or Sushi has violated any law. Also, the investigation does not mean that the SEC has a negative opinion of any person, entity, or asset.”

Grey then regarded the SEC’s subpoena as simply a “non-public fact-finding inquiry” being conducted to assess whether there had been a breach of the U.S. securities laws.

The Head chef also provided more details about the use of the $3 million legal defense fund, stating it is required to “handle legal needs for operational continuity and protect core contributors”.

Grey has also stated that any unused balance during the legal proceedings will be returned to the protocol’s treasury. 

Sushi To Unveil V3 Next Week

Following his statement on Friday, Grey informed the Sushi community via Twitter yesterday that the protocol will officially announce the highly anticipated SushiSwap V3 early next week. 

The Sushi Head Chef also stated there would be over 30 networks providing support for this protocol upgrade following its launch. Jared’s tweet has resulted in much-needed excitement among the Sushi community following the negative sentiments caused by the SEC subpoena over the last few weeks. 

That said, the SUSHI token is currently exchanging hands for around $1.09, having gone down by 2.3% in the last day and 0.1% in the last seven days. 

SUSHI trading at $1.08 | Source: SUSHIUSD Chart on Tradingview.com

Featured Image: PYMNTS, chart from Tradingview