The U.S. Securities and Exchange Commission (SEC) has settled charges with decentralized finance platform Rari Capital and its co-founders.

- Rari Capital was accused of operating without registration, offering unregistered securities, and misleading investors.

- Co-founders Jai Bhavnani, Jack Lipstone, and David Lucid also settled charges.

- The SEC alleges that Rari violated federal securities laws by selling interests in the Earn and Fuse pools, as well as Rari governance tokens.

- The platform misled investors about automatic asset redistribution and promised returns.

- The co-founders agreed to fines and a five-year ban from office, without admitting or denying the allegations.

Rari Capital also settled charges for operating an unregistered brokerage through the Fuse platform.