Crypto Project backed by Tim Draper, DMM, To Shut Down Amid SEC Scrutiny

Crypto project DeFi Money Market DAO (DMM), backed by billionaire venture capitalist Tim Draper, is permanently shutting down as it faces scrutiny from the US Securities and Exchange Commission (SEC).

Before the recent announcement, DMM initially said that it was shutting down due to “regulatory inquiries” in a tweet posted on the 5th of February.

DMM decided to shut down less than a year after its token launch. In a separate tweet, the project also provided a link where users can redeem tokens accrued to-date. The project said:

“DMM regrets the necessity of this action and would like to thank the DMM community for its support and active participation in this project.”

Shortly after stating “regulatory inquiries” as a reason for the sudden shutdown, DMM provided more details. The project received an investigative subpoena from the SEC on the 15th of December regarding the sales of its tokens and DMG tokens. DMM also noted that the SEC inquired about other aspects of its business operations.

Although DMM is shutting down, the SEC would continue the investigation into its business operations. Currently, DMM is working on returning DMG assets to its holders as it moves towards a permanent shutdown. 

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