Andre Cronje, founder of the Sonic blockchain and the DeFi platform Yearn Finance (YFI), recently revealed why he left the crypto world in 2022. He claims relentless harassment from the U.S. Securities and Exchange Commission (SEC) forced his hand.
The SEC’s Investigation
The trouble began in 2021 when the SEC contacted Cronje, demanding information about YFI, including fundraising details and investor identities. While Cronje cooperated fully, the SEC’s inquiries escalated, shifting focus from fundraising to the YFI vaults themselves, labeling them as “investment vehicles.” He found this particularly frustrating since he’s neither a U.S. citizen nor resident, and didn’t sell anything within the U.S.
The Toll of Legal Battles
Cronje describes the SEC’s actions as a series of attacks, each focusing on a new aspect. This constant barrage of letters and investigations consumed his time and energy, forcing him to abandon development work to focus solely on the legal battle. The stress and sleepless nights ultimately led to his decision to quit.
The Choice: Build or Fight?
Cronje explains that he was faced with a difficult choice: continue building his projects while enduring the SEC’s scrutiny and spending significant time and money on legal defense, or simply walk away. The constant pressure and lack of any personal benefit from his work ultimately led him to choose the latter.
Speaking Out
Cronje is now sharing his story, encouraged by the SEC’s recent shift in approach. He previously avoided discussing the investigation due to concerns of escalation.
