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SushiDAO served with subpoena by SEC
- tpmx 4y ago[flagged]
- noloblo 4y agowhat is r/FlordiaMan material?
- gostsamo 4y agoFlorida has transparency laws which allow for every dumb thing ever done by a florida man to be published and become highly visible on a global scale. It gave the state certain reputation due to observation bias.
- rocket_surgeron 4y agoThat's a myth. Well, maybe it was true 30 years ago, but it is no longer. The vast majority of US states have transparency laws no different from Florida. https://granicus.com/blog/foia-101-public-record-laws-in-each-state/ https://granicus.com/blog/foia-101-public-record-laws-in-eac... https://www.muckrock.com/place/ https://www.muckrock.com/place/ https://www.nfoic.org/state-freedom-of-information-laws/ https://www.nfoic.org/state-freedom-of-information-laws/ https://www.rcfp.org/open-government-guide https://www.rcfp.org/open-government-guide Floridaman is a thing, but not because of Sunshine laws. Floridaman reports are usually cheap-and-easy police blotter retreads for maximum clicks at minimal cost and practically every jurisdiction everywhere publishes their police blotter.
- jmount 4y agoThat would be Reddit collections of horrible acts by male Florida residents. The term derives from some formal bad writing conventions in news organizations.
- infamouscow 4y agoYou can't lose your house in bankruptcy in Florida.
- f38zf5vdt 4y ago...what even is SushiDAO? A Google search for "What is SushiDAO?" just gave a lot of articles with crypto-word-soup.
- noloblo 4y agomaker of sushi-swap dex incorporated as a company perhaps a c-corp unnecessarily SushiDAO created a legal entity “to reduce liability” and then that entity and an individual associated with it got subpoenaed. PSA: if there’s an entity, it’s not a Decentralized Autonomous Organization sushiswap: https://www.sushi.com/ https://www.sushi.com/ $SUSHI coin: https://coinmarketcap.com/currencies/sushiswap/ https://coinmarketcap.com/currencies/sushiswap/ SBF on sushi-swap: https://www.forbes.com/sites/tatianakoffman/2020/09/06/exclusive-sbf-speaks-out-on-defis-sushi-saga/ https://www.forbes.com/sites/tatianakoffman/2020/09/06/exclu... SBF the white-knight saved sushi swap https://decrypt.co/41606/the-man-who-saved-sushiswap https://decrypt.co/41606/the-man-who-saved-sushiswap
- World177 4y ago> PSA: if there’s an entity, it’s not a Decentralized Autonomous Organization I don't completely agree, because a DAO like SushiDAO could lose it's websites and social media accounts, but the total value locked in it's smart contracts would not immediately change. (in the same way as a normal legal entity) These types of contracts are usually governed with their token, which would persist if the legal entity and current developers disappeared. Though, without a way for users to interact with the contract, I would imagine most of the total value locked would move away from the contracts afterwards.
- robopsychology 4y agoSushiSwap is an exchange where you can swap TokenA for TokenB. A DAO is where an Organization operates based on RFCs and community voting. SushiDAO is the combination of the two, so an exchange that is ran by community voting. I suspect if it’s a DAO operating as a subsidiary of an LLC it’s a method to avoid liability.
- ramesh31 4y ago
- giogadi 4y agoI initially thought this was a joke website about trading in literal sushi. After a few minutes on the website I'm still thinking it's a joke
- O__________O 4y ago>> Coverage: The Sushi DAO Legal Defense Fund will provide coverage for reasonable attorneys’ fees and costs for the following parties: Core contributors and multisig participants active since the ratification of Sushi 2.0 (Sushi 2.0: A Restructure For The Road Ahead 91) to present. Anyone more familiar with the project able to speculate why they’re not including core contributors prior to Sushi 2.0? ___ Surprised core contributors would have publicly identified themselves, since even without any legal liability, to me it puts a huge target on their back given the leverage they have over the project assuming they have ability to commit code that is then distributed to the DAO.
- politician 4y agoPer the comments in the thread, they didn't post the subpoena and people are wondering whether this is real.
- berkle4455 4y agoWell-timed fleece for sure
- soared 4y agoFunny that the founder can just submit to vote what is effectively “I need $3M USD and if that runs out additional $1M sums in perpetuity” with zero oversight on how it’s spent, outside of claiming it will be spent on legal costs.
- gabereiser 4y ago"I won't comment on legal matters" "But I'm asking for legal funds" I'm asking for funds too. On matters I can't discuss. Does that apply too? /s
- p_j_w 4y agoIf you can't trust people in crypto, though, who CAN you trust?
- theptip 4y agoThat is about what would happen in a board meeting. And the final edit ($1m top-ups are limited to twice, then come back and ask for approval again) seems like a reasonable response. Presumably there is some audit trail on expenses after the fact?
- soared 4y agoYeah that’s what I mean - boards and real companies have audits/etc. although if sushi is a c-Corp maybe they do need to submit documentation when they do taxes and such.
- ejanus 4y agoThat's pure madness.
- throw101010 4y agoNot sure if it's funny, but in a DAO often anyone can make a proposal (usually following a certain process and holding a small amount of thr governance token). They are calling for the token holders to give their opinion or approval for a transaction. It will be funny if the vote reveals the founder has a majority of the tokens and can vote himself these funds from the DAO's treasury. But if the token is well distributed in the DAO and the community surrounding it, and the proposal passes the vote, I don't really see how it is funny. It is just how governance works in a DAO. Personally, with the lack of details in this proposal I will vote against it, but at this stage it is most likely the kind of input the proposer is expecting, before the actual vote.
- throwaway4good 4y ago$3M USD for legal fees - in what sort of banana republic is that necessary?
- JumpCrisscross 4y ago> in what sort of banana republic is that necessary For responding to a civil subpoena? None.
- koolba 4y agoIn a banana republic he’d have been beaten with a wrench until he hands over his crypto wallets.
- dvt 4y agoHonestly, I'm also flabbergasted when the guy is basically running an unregulated exchange that offers what are almost certainly unregistered securities[1] (definitionally, the value of $SUSHI LP tokens goes up when people trade other projects' tokens, so the Howey Test is clearly violated) and freely chooses to live in the US. The SEC is shooting fish in a barrel. [1] https://coinmarketcap.com/currencies/sushiswap/ https://coinmarketcap.com/currencies/sushiswap/
- blastro 4y ago> shooting fish in a barrel There's a sushi joke in there somewhere
- Topgamer7 4y agoIts rare for sushi to be grilled like this. But the SEC is going to make a go of it.
- jgilias 4y agoBut he’s not exactly _running_ the exchange, is he? I mean, it’d be interesting to see how the SEC asks him to shut it down, and of course that’s actually impossible for him (or anyone really) to do.
- dvt 4y agoIf Tornado Cash was shut down (where everyone was pseudo-anonymous), SushiSwap can definitely be shut down. And TC wasn't exactly "shut down," it was just crippled by being blacklisted by USDC (Circle), essentially banned from all legitimate exchanges via sanctions, etc. Without liquidity, these financial toys are just dead code.
- monero-xmr 4y agoWhat's interesting is a steady stream of volume continues to flow through Tornado Cash, proving that it was indeed decentralized enough to withstand global sanctions. Although all funds exiting it are suspicious. One thing to remember is that the sanctions on TC currently only apply to US citizens and companies, although effectively given the US' dominant financial position globally, is indeed a massive red flag. https://decrypt.co/123751/euler-finance-hacker-sends-1-6m-eth-tornado-cash https://decrypt.co/123751/euler-finance-hacker-sends-1-6m-et...
- Mizoguchi 4y ago[flagged]
- sofixa 4y agoI think it's in really poor taste to compare regulators doing their job shutting down illegal activities and one of the most infamous pogroms, Kristallnacht.
- Razengan 4y agoPeople say "nuked" or make similar references to Hiroshima/Nagasaki, which I dislike for that same reason, but it's odd how that's generally given a pass.
- dang 4y ago"Don't feed egregious comments by replying; flag them instead." a.k.a. please don't feed the trolls https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html
- deleted 4y ago[deleted]
- dang 4y agoCould you please stop posting unsubstantive comments and flamebait? You've unfortunately been doing it repeatedly. It's not what this site is for, and destroys what it is for. If you wouldn't mind reviewing https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html and taking the intended spirit of the site more to heart, we'd be grateful.
- vinnie-io 4y agolol get f*cked
- dang 4y agoCan you please not do this here? You may not owe sushi or DAOs better but you owe this community better if you're participating in it. https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html
- mugr 4y agoJust about everyone here seems to have a principaled position against DLT. Also I think it should be mentioned that this is one of the first cases a relativley old and renowned DAO could be actually tried in a legal case with many possible implications. Also such a so called "technology neutral approach" to regulation has some flaws in itself. For example most people would say you can't really compare the web to mid 20th century phone lines and still a lot of laws are called something akin to "Communications act". That said I have not paid a lot of interest to Sushi, I finder other swaps better and I guess that 3 million dollars (to one person ?) are a kinda weird proposal.
- tbenst 4y agoThe leaders of SushiSwap have long been running a Kleptocracy. About a year ago, “FrogNation” attempted a takeover of SushiSwap, and as a member of the DAO I did due diligence on the on Dani Sestagelli and Sifu. I found blockchain transactions demonstrating that they had been personally withdrawing >$30M from the treasury of their project WonderlandTime, and posted this evidence to the SushiSwap forums. I was immediately banned from the Sushi forums and discord. About 30 days later, it was revealed that Sifu was known fraudster Michael Patryn, and the project imploded. Sadly, the Sushi leadership has continued to suppress any investigative work by DAO members into the actions of leadership. There is undoubtedly a culture of suppressing information, and receipts suggestive of fraud. The SEC is right to investigate.
- saurik 4y agoSo, most of these "DAOs" aren't actually decentralied. You can build these things so they are decentralized in nature--where random users can vote on even something as critical as what code is running at any given moment--but there are inherent limitations then to what can actually be done by the organization. If you even just think through "who owns our (centralized) domain name?" the DAO often rapidly decloaks and you see a handful of people are running the show and have merely promised to do what everyone asked them to... and like, that's exactly what a normal centralized corporation is with shareholders, which we have chosen as a society (for better or worse) to classify as a security. https://docs.sushi.com/docs/Governance/Current%20Governance%20Model https://docs.sushi.com/docs/Governance/Current%20Governance%... > Any use of the devfund wallet requires that the Multisig sign it, which they will only do if it is clearly by the will of the community and has had a passing vote by quorum. There must be at least 4 out of 7 signatures for a transaction to be approved. > The Multisig members are trusted members of the DeFi & Ethereum ecosystem: @Mable_Jiang, @0xSami_, @nickjrishwain, @0xChop, 0xMaki, @tomlombardi, @DeFi_Ted > Any changes that are within the purview of the core team, such as rebalancing and administration of farming pools and use of the growth fund, must pass the Operations Multisig with at least 3 signatures. > The Ops Multisig members are: @MatthewLilley, @0xJiro, @LufyCZ, @sarangprikh22, @chillichelli, @OlaStenberg__ > Our goal is to establish a DAO with working, trustless governance. This is not an easy task by any measure, and is not something that will be rushed. All are welcome to discuss how the future DAO should work, as well as how the current governance model works, by participating on our forums and in the #governance channel of our Discord server. This is, thereby, not decentralized and autonomous. This is a system where a small handful of people are sitting on a giant pile of cash--one which, AFAIK, is being funded by fees charged on the operating platform--that they promise they are managing on behalf of and at the direction of people who have received what amounts to a share in their organization as part of what is almost certainly an unregistered security offering. That they promise to use direct shareholder voting for as many decisions as possible and have an extremely liquid market for their shares doesn't change this analysis. Which, to be clear, is entirely different from the situation with, say, Tornado Cash, or any other decentralized system. I'm seeing a number of people here saying "how would they even shut it down?! it's decentralized!"... but, no: the thing this DAO is isn't merely some decentralized contracts. (Hell: I haven't looked yet, but it wouldn't surprise me one iota if there were an obvious kill-switch in even the supposedly-decentralized part of the system that can be tickled by that Operations Multisig.)
- fellellor 4y agoI am praying everyday for the US financial system to collapse and the dollar to hyperinflate, so the good folks from Sushi company don’t have to deal with this unjust lawsuit.