Founders Fund Partner: SEC Once Forced DeFi Founders to "Never Work in the Crypto Industry"
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Founders Fund Partner: SEC Once Forced DeFi Founders to "Never Work in the Crypto Industry"
According to Cointelegraph, Joey Krug, partner at venture capital firm Founders Fund, revealed at the ETHDenver conference that under former chairman Gary Gensler, the U.S. Securities and Exchange Commission (SEC) forced decentralized finance (DeFi) platform founders to promise never to work in the cryptocurrency industry again through settlement agreements. Krug said: "In many cases, the government has located the founders of DeFi protocols and essentially told them they must settle with us. In many
Navigating Web3 tides with focused insightsTechFlow news, on February 28, according to Cointelegraph, Joey Krug, partner at venture capital firm Founders Fund, revealed at the ETHDenver conference that under former chairman Gary Gensler, the U.S. Securities and Exchange Commission (SEC) had forced founders of decentralized finance (DeFi) platforms into settlement agreements requiring them to permanently exit the cryptocurrency industry.
Krug said: "In many cases, the government has located founders of DeFi protocols and essentially told them they must settle with us. In many instances, they were required to sign documents pledging never to participate in the crypto industry again. And due to non-disparagement clauses, these agreements cannot be publicly discussed." He also claimed regulators threatened founders: "If you don't agree to these terms, you will go to jail."
Krug said he initially did not believe such settlement agreements existed, until unnamed founders showed him the documents, which indeed included clauses stating "never to engage in the crypto industry" and "not to discuss externally."
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