The U.S. Securities and Exchange Commission (SEC) has settled charges against decentralized finance platform Rari Capital and its co-founders, Jai Bhavnani, Jack Lipstone, and David Lucid, for misleading investors and operating as unregistered brokers. At their peak, Rari Capital's platforms held over $1 billion in crypto assets, offering investment products known as Earn and Fuse pools. The SEC alleged that Rari falsely claimed the Earn pools would automatically rebalance into high-yield investments, while in reality, the process required manual intervention, leading to investor losses. The settlement includes various penalties, behavioral restrictions, and a five-year ban on the co-founders from serving as officers or directors, though they did not admit to the allegations. This case underscores the SEC's commitment to holding crypto firms accountable under federal securities laws, despite claims of decentralization. Rari Capital's troubles highlight the regulatory challenges faced by decentralized finance platforms.