Crypto project Sushi is planning to establish a legal defense fund to fight the US Securities and Exchange Commission in court after the regulator issued a subpoena against Sushi, and its Head Chef, Jared Grey.
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In a forum post, Grey proposed Sushi DAO to back the fund with $3 million worth of USDT. Grey claims the fund will cover "legal costs regarding inquiries, litigation, and other issues targeting core contributors."
The funds will be locked in a new multi-sig wallet and available for legal representation as needed, he added. The legal defense fund will be backed by fees received from Kanpai, grants and TWAP orders on Sushi. As of press time, the SEC made no public accusations against Sushi of any wrongdoing.
In late March 2022, a user Tangle suggested SushiSwap to form a non-profit organization aimed at providing legal certainty and reducing risks for token owners and developers.
To establish the organization, Tangle said a one-time cost of $85,000-100,000 and recurring costs of $10,000 would be needed. This amount includes legal advice, business structuring, registration and launch. The initiative received support of 89% of the voters.
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