Sep 18, 08:15 PM

SEC Settles Charges Against Rari Capital and Co-Founders for Misleading Investors, Unregistered Broker Activity

The U.S. Securities and Exchange Commission (SEC) has settled charges against decentralized finance (DeFi) platform Rari Capital and its co-founders, Jai Bhavnani, Jack Lipstone, and David Lucid. The SEC accused Rari Capital of misleading investors and operating as an unregistered broker. The charges relate to their two blockchain investment platforms, Earn and Fuse, which once held over $1 billion in crypto assets. Rari Capital and its co-founders were also accused of offering unregistered securities. As part of the settlement, the co-founders have agreed to pay fines, face civil penalties, and were banned from serving as executives. Additionally, permanent injunctions were imposed.