American CryptoFed DAO has announced that it is going to take on the US Securities and Exchange (SEC) all by itself.
The firm is known for being the first DAO that gained legal status in the United States.
CryptoFed Takes on the US SEC
The officials at CryptoFed DAO have confirmed that they will be fighting their case against the US SEC over the registration of their tokens.
It was in the year 2021 when the firm registered its tokens in the United States.
The firm intends to defend itself in court without any support from an attorney. They will not be bringing in any attorney to look into the case as they want to do it all by themselves.
The representation of CryptoFed DAO at the court will be done by the executives.
The firm is to defend itself against the allegations posed by the US SEC about its securities registration.
According to the regulator, the firm used the tactic of information misstatement and omission in order to get its token registers. It was the year 2021 when the company had taken care of the entire matter.
Tokens Registered by CryptoFed DAO
In 2021, the firm reportedly registered two coins from their end so they could be offered to the US locals.
The first token they registered was Locke, which is the governance token on the platform. The second token they registered was the Ducat stablecoin.
Surprisingly, the US SEC kept quiet about their concern over the registration of the firm through the year 2021.
It is by the end of 2022 that the regulatory authority reported that there were problems with the token. The regulator has issued a stop order against the platform and its currencies.
Now, the firm is unable to proceed with the issuance and selling of the particular tokens. According to the regulator, they have found out that the registration of the platform has multiple problems.
CryptoFed to Fight its Own Case
However, the firm is adamant that they are not at fault, which is why they have decided to deal with the matter on its own. According to the officials at CryptoFed, they will be dealing with the matter on their own.
They have decided that they will take the matter to the court and will not rely on a lawyer to fight the case against.
Xiaomeng Zhou, the organizer and the COO of American CryptoFed has confirmed that they made a mutual decision internally before coming to this point.
They themselves will be dealing with the entire case and they have sought no support or assistance from a lawyer on the matter.
By representing the case themselves, they feel they will be able to fight against the US SEC with all their might.
Motion for Extension
The US SEC has also filed a case against their firm and the court awaits their response based on the questions raised by the regulator.
Now it is time for the firm to revert and answer the questions posed by the regulator at the court. However, with the firm fighting its own case against the SEC in court, it will need more time to respond.
For this purpose, they have already filed a motion at the court, requesting more time to come up with answers to the questions raised by the regulatory authority.
According to the firm, they are well aware of the deadline and are hoping that the court will grant them an extension to work on their defense.
If the American CryptoFed DAO is granted the time they require, they will have a 20-day time period to submit their answers at the court.
The firm can also use the time to come up with a strong argument that will help them stop the US SEC from gaining a legal order against its business.
