The U.S. Securities and Exchange Commission (SEC) announced today that it has filed and settled charges against the decentralized finance (DeFi) protocol Rari Capital, Inc. and its co-founders Jai Bhavnani, Jack Lipstone, and David Lucid. The SEC accused them of misleading investors and engaging in unregistered broker activities while operating two blockchain-based investment platforms, which collectively held over $1 billion in crypto assets at their peak. Rari Capital settled with the SEC, which charged them with conducting unregistered issuances of three securities associated with these platforms. In a separate order, Rari Capital Infrastructure LLC, which took over operations from Rari Capital in 2022, settled charges of engaging in unregistered securities issuance and unregistered broker activities. As part of the settlement agreement, Rari’s co-founders agreed to pay fines and are prohibited from serving as executives and directors for five years, subject to court approval.
Original article link:
https://www.sec.gov/newsroom/press-releases/2024-138