• Lido’s LDO token sank 10% following rumors that the SEC had delivered a Wells Notice to decentralized staking service.
• Crypto podcaster David Hoffman spread and then retracted a rumor that the SEC had served Lido with a Wells Notice.
• A spokesperson for Lido declined to comment on whether the protocol had received a notice.

Lido’s LDO Token Sinks 10%

Crypto podcaster David Hoffman spread (and then retracted) a rumor that the SEC had delivered a Wells Notice to the decentralized staking service, resulting in an immediate 10% drop in the value of Lido’s native token, LDO. A spokesperson for Lido declined to comment on whether the protocol had received such notice.

What is a Wells Notice?

A Wells Notice is a letter from the SEC detailing charges it is considering bringing against a recipient. On Friday, Hoffman said that he’d heard Lido and other crypto projects had been served with Wells Notices, an assertion he later retracted.

Rumors Spark Panic on Crypto Twitter

The rumors sparked panic on Crypto Twitter, and quickly spread across ETHDenver – one of the year’s largest crypto industry gatherings – which was taking place at the time. The rumors would suggest that the SEC is ramping up scrutiny of Ethereum and crypto staking services in general.

Hoffman Retracts His Comments

Hoffman described his comments as “a miscommunication between me and a lawyer friend”, and soon after his video spread on Twitter, he backtracked stating “the idea of a mass recent carpet bomb isn’t correct.”

Lido Spokesperson Declines To Comment

A spokesperson for Lido declined to comment on whether or not they have received such notice from the SEC.