Andre Cronje Shares His Struggles and Decision to Step Back from DeFi
It was a challenging, and incredibly stressful time. And I do not wish any of my fellow builders should have gone through something like that. I look forward to the future and a new decentralized world we can build.
Andre Cronje and His Resignation
Well-known as the Father of DeFi, Cronje was compelled to cease his activities in 2022. He had launched Yearn in January 2020 and avoided token sales to prevent regulatory issues, ensuring compliance with securities laws. Furthermore, he did not profit financially from the protocol, emphasizing its open-source nature.
“I did not earn any fees from the protocol, nor did my team receive any. The protocol had no financial benefit for me; all code was open-source and available for free. I was not a U.S. citizen and had only visited the U.S. for a conference.”
Cronje established Keep3r around 2021, operating under similar guidelines. However, that year he received a letter from the SEC requesting information about YFI.
“I complied and provided as much information as I could. Just collecting details required weeks of research and effort, which I often lacked.”
SEC Pressured Him to Resign
After detailing his experience, Cronje revealed he opted to resign following prolonged stress and countless sleepless nights. He faced a dilemma: either continue developing open-source technology without financial gain or succumb to the SEC’s pressures, risking financial burdens that would haunt him.
New direction
Given the new direction of the SEC, I finally figured I can actually write about this, as previously I was strongly advised by those same investigators to not mention the investigation or it could escalate things.
It was a challenging, and incredibly stressful time. And I do not wish any of my fellow builders should have gone through something like that.
I look forward to the future and a new decentralized world we can build.