**🚀 SEC Settles with Rari Capital Over Misleading Investors and Unregistered Broker Activity**

- The SEC has settled with DeFi protocol Rari Capital and its co-founders for allegedly misleading investors and engaging in unregistered broker activity.

- Rari's Earn and Fuse pools were claimed to function like crypto asset investment funds, but the SEC says they required manual rebalancing, contrary to investor beliefs.

- The settlement includes permanent injunctions, civil penalties, and a five-year ban on the co-founders serving as officers or directors.

- Rari Capital, launched by teenagers in 2020, faced multiple hacks and ultimately wound down operations in 2022.