The U.S. Securities and Exchange Commission has settled charges against Rari Capital Inc., a “purported” decentralized finance protocol, and its founders for misleading investors and acting as an unregistered broker-dealer for investment platforms that once held more than $1 billion in assets.
Rari Capital offered two investment products, which functioned as cryptoasset investment funds and allowed investors to deposit tokens into lending pools and earn returns. Investors in the pools received a token representing their interest in the pools and the right to receive any profits the pools made. Some investors also received a governance token, called the Rari Governance Token, or RGT. With both tokens, Rari engaged in unregistered offers and sales of securities, the SEC said in a statement Wednesday.
