Two years after launching Yearn Finance, a decentralized financial (Defi), platform in Yearn (S), the founder of Sonic (S), a layer-1 blockchain company, speaks out about his decision to leave crypto by 2022.
Andre Cronje, in a Medium post, says that he discontinued his engagement with DeFi due to regulatory pressure.
The U.S. Securities and Exchange Commission sent him a request for information in 2021, asking whether he had raised money and who his investors were.
Cronje claims he provided all the information he had, and that he was able to comply with SEC’s requests. However, he continued receiving letters from them which became increasingly hostile. Cronje claims that the regulator investigated him for different reasons, including violation, and was confused by this because he’s not US resident or a citizen, nor did he sell anything in the US.
The letters came in, each time creating a different angle. The company began ‘investigating me’ from an SEC violation and raise angle… Once it became clear that the raise angle was not an attack angle, they shifted their focus to the yearn vaults as investment vehicles ‘.”
Cronje claims that the amount of time it took to respond to the regulator’s questions diverted him from his main focus.
The stress and sleepless nights of his ordeal led him to leave.
It took me 2 years to get here, and I had the choice of what direction to go in. It is possible to continue to work for nothing, to waste my time and energy, to receive no benefits, and to have to face constant attacks, and to be forced to use real money and months of life to defend this code. Or, I must step back .”
Cronje is sharing his experiences as SEC changes its direction.
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As new information becomes available, this post Sonic Founder Andre Cronje says SEC harassment forced him to quit crypto in 2022 could be updated.
