- Sonic’s Andre Cronje disclosed that SEC forced him to leave DeFi.
- He claimed that the SEC sent him threatening letters.
The Sonic founder exposes SEC harassment behind his 2022 DeFi departure. In a recent blog post on Medium, Andre Cronje, founder of Sonic revealed the shocking truth about SEC.
Andre Cronje says that back in 2021 SEC used to harass him and repeatedly scare him by sending threatening letters. Because of the constant pressure, he left the DeFi sector. However, as Gary Gensler stepped out from his chairman position and now SEC is adopting a pro-crypto stance, he feels safe to share his story with the community.
Andre also claims that the investigators threatened him to not mention the investigation process otherwise it would escalate things in a wrong way.
Andre Cronje Reveals SEC Harassment Behind His 2022 DeFi Departure
In January 2020, Cronje launched Yearn Finance and to ensure all regulatory requirements he kept his distance from raising money, selling tokens, or breaking any security law. He said the project was open-sourced and didn’t give any financial benefit to him.
Despite all this, he received his first SEC letter which requested to provide all the essential information about the YFI project. The information includes investor details, funding, and profit details. Cronje provided the requested information to the SEC.
However, after providing all the information he received another letter that demanded more details. This forced Cronje to take legal help for drafting the response. After this, the regulator still keeps sending him letters. He says with every letter the commission tried to attack him with a new angle. Cronje claimed the commission wasted his precious two years and also put mental pressure which led him to leave the DeFi sector.
Andre Cronje’s story was shocking and revealed the harsh reality of the previous SEC authorities. Recently, Acting Chair Mark Uyeda also criticized the actions made by the Securities and Exchange Commission. He stated in his announcement,
“To date, the SEC has relied primarily on enforcement actions to regulate crypto retroactively and reactively, often adopting novel and untested legal interpretations along the way.”
Besides this, Udeya also added that “SEC can do better” when it comes to crypto regulation.
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