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According to an announcement made by BarnBridge legal counsel Douglas Park on Twitter, the structured derivatives trading protocol is facing an SEC investigation into the Bainbridge DAO and individuals associated with the DAO.
A legal spokesman for the company said the SEC’s investigation is nonpublic, so details and results of the regulator’s investigation cannot be shared with members of the community. BarnBridge co-founders Tyler Ward and Troy Murray are also subject to a ban on comment and public discussion.
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“In an effort to reduce potential legal liability, the company is discontinuing all work on BarnBridge-related products, including closing the liquidity pool. All work on these products will be halted, and individuals will no longer be able to receive compensation until further notice,” the statement said.
The withholding of information under the pretext of the non-public nature of the actions by regulatory agencies has led some users to suspect that BarnBridge’s founders may be using the situation as an excuse to pursue an “exit strategy” and deceive investors. According to CoinGecko, the BarnBridge BOND token fell 9.4% to $3.02 in 24 hours.
Earlier, Dallas Mavericks basketball owner Mark Cuban criticized the U.S. Securities and Exchange Commission for its misguided approach to regulating the cryptocurrency industry.