<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/sec-takes-action-against-rari-capital" data-wpel-link="internal" rel="noopener noreferrer nofollow">SEC Takes Action Against Rari Capital</a><br></p>
<p style="text-align: justify">The U.S. Securities and Exchange Commission (SEC) has intensified its regulatory efforts in the digital currency space, with Rari Capital being a recent entity under scrutiny. The SEC accuses the decentralized finance (DeFi) platform and its founders of acting as unregistered brokers, which breaches federal securities laws. This move is consistent with the SEC’s previous warnings that cryptocurrency firms would face rigorous enforcement actions for non-compliance.</p>
<h2 id="what-led-to-the-legal-action">What Led to the Legal Action?</h2>
<p style="text-align: justify">Allegations against Rari Capital involve misleading financial backers about the nature and potential returns of certain crypto investments. The SEC has filed complaints against co-founders Jai Bhavnani, Jack Lipstone, and David Lucid, claiming they operated without the necessary registration as brokers, thereby deceiving investors.</p>
<h2 id="how-is-the-sec-protecting-investors">How is the SEC Protecting Investors?</h2>
<p style="text-align: justify">The SEC asserts that its actions are part of a broader strategy to safeguard investor interests. Monique, Director of the SEC’s San Francisco Regional Office, emphasized the agency’s stance by highlighting the deceptive practices employed by Rari Capital and its founders.</p>
<p style="text-align: justify">To address the SEC’s concerns, Rari Capital and its founders have consented to several settlements. These include:</p>
<ul style="text-align: justify">
 <li>Agreeing to permanent injunctions to prevent future violations.</li>
 <li>Accepting behavioral restraining orders.</li>
 <li>Paying civil penalties.</li>
 <li>Enduring a five-year prohibition from serving as officers or directors.</li>
</ul>
<p style="text-align: justify">These measures have been agreed upon without Rari Capital or its founders admitting or denying the allegations. The SEC’s pursuit of this case underscores its continued vigilance and enforcement in the cryptocurrency sector, aiming to ensure compliance and protect investors from misleading practices. As the regulatory environment evolves, firms operating within the cryptocurrency space may need to revisit their operational frameworks to avoid similar sanctions.</p>
<h5><span style="font-weight:bold;font-size:16px">Continue Reading: </span> <a href="https://en.bitcoinhaber.net/sec-takes-action-against-rari-capital" data-wpel-link="internal" rel="noopener noreferrer nofollow">SEC Takes Action Against Rari Capital</a></h5>

SEC Takes Action Against Rari Capital

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