Solana-Linked $1 Billion DeFi Dream Crushed By SEC Intervention

Christian Encila

13 hours ago

2 mins read

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DeFi Development Corp. hit a major roadblock this week when the US Securities and Exchange Commission blocked its $1 billion registration filing. The move came after regulators found that the company’s Form S-3 lacked a key internal controls report tied to its 10-K. As a result, DeFi Development—formerly known as Janover—pulled the filing and said it will fix the paperwork before trying again.

Missing Controls Report

According to the SEC, the registration was ineligible because it did not include the required internal controls over financial reporting. That report is a must for any firm raising capital through public offerings. Without it, the commission won’t even consider your request. DeFi Development filed in late April 2025 but overlooked this step, a basic requirement in US securities law.

DeFi Development (formerly Janover) has withdrawn its $1 billion Form S-3 registration after the SEC deemed it ineligible due to missing a required internal controls report in its Form 10-K. No securities were issued, and part of the proceeds had been intended for purchasing…

— Wu Blockchain (@WuBlockchain) June 11, 2025

Plan To Buy Solana

Based on reports, the company aimed to use the funds to buy Solana tokens. Solana ranks as the sixth-largest cryptocurrency by market cap. The filing showed some of the $1 billion would go toward staking rewards and token purchases. Staking can earn regular returns, but only if SOL holds or gains value. Putting such a large stake into one chain carries risks if market prices dip.

SOL is currently trading at $158. Chart: TradingView

Withdrawal And Next Steps

DeFi Development confirmed that no securities were issued during this process. It said it plans to refile once the controls report is in place. A quick resubmission—perhaps within 30 or 45 days—would signal they were almost ready. Investors will watch whether the company brings in an experienced underwriter or auditor to prevent another slip.

Market Reaction

Some traders had hoped the influx of a billion dollars in Solana tokens would boost the price. Now that the filing is on hold, those bets may stall. Markets often react when big purchases are delayed. Based on trading patterns, any sudden buy order of hundreds of millions in SOL could swing prices up or down.

What Comes Next

DeFi Development’s experience highlights that crypto firms must meet the same rules as any other public issuer. Skipping standard checks can derail even the boldest plans.

The company’s next move will show how well it can balance its blockchain ambitions with straightforward regulatory steps. For now, the token-buy plan waits in limbo, and everyone from investors to developers will be watching the next filing.

Featured image from Reuters, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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