On September 19, the U.S. SEC announced today that it had reached charges with Rari Capital, Inc., the entity behind the DeFi protocol, and its co-founders Jai Bhavnani, Jack Lipstone, and David Lucid. The SEC accused them of misleading investors and engaging in unregistered brokerage activities while operating two blockchain-based investment platforms, which held a total of more than $1 billion worth of crypto assets at their peak.
As part of the settlement, Rari’s co-founders agreed to pay fines and be banned from serving as executives and directors for five years, but those bans must be approved by the court.
