The SEC has settled charges with cryptocurrency lending platform Rari Capital and its co-founders for unregistered activities, including acting as an unregistered broker and offering unregistered securities. The SEC alleged Rari misled investors by falsely claiming that its Earn pools would autonomously rebalance investments, while manual intervention was often required. Rari also overstated potential returns, failing to account for fees, leading to significant investor losses. The co-founders have agreed to civil penalties and injunctions without admitting or denying the findings, with the settlements pending court approval.
