The U.S. Securities and Exchange Commission (SEC) has fined Burnbridge DAO (BOND) and its founders the equivalent of more than $1.7 million for allegedly offering unregistered crypto securities.
SEC To tell BarnBridge, a decentralized finance (DeFi) protocol, sells and offers a product called “SMART Yield Bond” and compared it to asset-backed securities.
Burnbridge’s white paper touted SMART Yield bonds as offering “outsized” returns while “reflecting the safety and security of high-grade fixed income products offered by traditional finance.”
Regulators allege that Barnbridge also operated the SMART Yield pool as an unregistered investment company. In total, SMART Yield has secured over $509 million in investments from investors.
Barnbridge did not admit or deny the SEC’s findings, but agreed to forfeit approximately $1.5 million worth of proceeds from the sale of SMART Yield. The project’s co-founders, Tyler Ward and Troy Murray, also agreed to each pay a $125,000 civil penalty.
Coinbase discontinued trading services for BarnBridge’s native asset, BOND, in September. The top US cryptocurrency exchange said it regularly reviews digital assets traded on its platform to ensure they meet listing standards.
At the time of writing, BOND is trading at $3.89. The crypto asset, ranked 661st by market capitalization, has gained nearly 4% in the past 24 hours.
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