The US Securities and Exchange Commission has reached a settlement with DeFi platform Rari Capital, Inc. over charges it made against the firm and co-founders for misleading investors and operating without proper registration as brokers.
According to the SEC, Rari Capital’s co-founders Jai Bhavnani, Jack Lipstone, and David Lucid misrepresented the automatic and autonomous rebalancing of their managed Earn pools, which permitted investors to earn yield by lending tokens.
The SEC also found that the co-founders engaged in unregistered broker activity related to the user-generated Fuse pools.
The agency claims that Rari Capital’s pools had over $1 billion worth of assets at its peak.
