The United States Securities and Exchange Commission (SEC) has reached a settlement with decentralized finance (DeFi) platform Rari Capital and its founders for allegedly deceiving investors and engaging in unregistered broker activities. The SEC accused Rari Capital of operating Earn and Fuse pools as investment funds, allowing investors to deposit crypto assets and earn returns. The platform allegedly conducted unregistered sales of securities by offering interests in these pools and governance tokens. Additionally, Rari Capital and its founders were accused of misleading investors about the pools' features and profitability. The settlement includes injunctions, penalties, disgorgement, and a ban on the founders serving as officers. Rari Capital Infrastructure agreed to a cease-and-desist order. Despite its initial success, Rari Capital faced challenges, including hacks that led to significant losses and eventually led to the platform winding down its operations. Read more AI-generated news on: https://app.chaingpt.org/news

#SEC