SEC cracks down on first DEFI firm

Granted, this action wasn’t taken specifically because the service was a defi service, but because it was a scam operation that just so happened to use defi technology and tried to pass it’s operation and interest-generating services off as legitimate. They weren’t.

The only thing that surprises me here is that it took this long - DeFi exchanges have contributed up to 21% of the total volume of cryptocurrency related crime in 2020 – the staggering $99.2 million worth of assets have been stolen or laundered. You’d think SEC would notice earlier.

The industry is moving at lightning speed. I doubt the personnel is there and the expertise has to be lacking as well. Sadly, there will be a ramp up period where the right people are hired, that will take a very long time, and the consumer will undoubtedly find himself caught up in another scam.

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