The Securities and Exchange Commission (SEC) has filed charges against decentralized finance platform Rari Capital and its co-founders. The SEC alleges that Rari Capital and its co-founders misleadingly promoted a high annual percentage yield to investors without disclosing the impact of fees. As a result, a significant number of Earn pool investors suffered losses on their investments.
Rari Capital is a decentralized finance platform that offers users the ability to earn interest on their cryptocurrency investments. The platform’s co-founders are accused of failing to provide accurate information about the potential risks and costs associated with investing in the Earn pool. According to the SEC, this lack of transparency led investors to believe they would earn a higher yield than was actually possible.
The SEC’s charges against Rari Capital and its co-founders highlight the importance of transparency and honesty in the cryptocurrency and decentralized finance space. Investors should always conduct thorough research and due diligence before investing in any platform or project to avoid potential losses.
