Andre Cronje Reveals Reasons Behind DeFi Exit

According to PANews, Andre Cronje, co-founder of Sonic Labs (formerly Fantom), has detailed his reasons for leaving the DeFi sector in 2022. Despite adhering to regulatory requirements during the development of projects like Yearn and Keep3r, without engaging in fundraising, token sales, or personal profit, Cronje began receiving investigation letters from the U.S. Securities and Exchange Commission (SEC) starting in 2021. Cronje explained that the initial letters requested detailed information about YFI, which gradually escalated into a broader investigation. This included inquiries into whether Yearn vaults constituted 'investment tools.' Lacking a legal entity for the projects, Cronje found himself without legal support and had to invest significant time and resources in responding to the investigations. The mounting pressure ultimately led him to cease development work and, after two years of legal disputes, to withdraw from public activities. Despite these challenges, Cronje expressed that he could not abandon his passion for decentralized finance. After his exit, he remained committed to researching and developing new projects, with plans to introduce new DeFi primitives.