The U.S. Securities and Exchange Commission (SEC) has settled a case against DeFi protocol Rari Capital and its co-founders for misleading investors and operating an unregistered brokerage.

- Rari Capital is accused of selling unregistered securities through its Earn and Fuse pools.

- The co-founders allegedly promised automatic asset rebalancing, but this often required manual intervention.

- The protocol is also accused of operating an unregistered brokerage.

The first settlement includes permanent injunctions, civil penalties, and a five-year ban on the co-founders. Rari Capital agreed to a cease and desist order without admitting or denying the SEC's findings. 💼