KeyTakeaway:
Andre Cronje left DeFi in 2022 due to SEC pressure and legal battles. Despite scrutiny, Cronje earned no fees from Yearn.Finance and never sold to U.S. residents. After rebranding Fantom, Cronje’s new project Sonic quickly grew, surpassing $350 million in TVL.
Andre Cronje, Co-Founder & Architect at SonicLabs, has opened up about the personal and professional reasons behind his decision to quit DeFi in 2022. In a recent blog post published on January 28, 2025, Cronje shed light on the immense pressure from the U.S. Securities and Exchange Commission (SEC), which influenced his departure from the sector.
Cronje, the founder of Yearn.Finance (YFI) and Keep3r (KP3R), revealed that his decision to step away from DeFi came after a prolonged period of facing intense scrutiny from U.S. regulators. Between 2021 and 2022, the SEC investigated whether Yearn’s vaults could be classified as “investment mechanisms.”
This investigation was focused on Cronje’s income and involvement with Yearn.Finance and Keep3r, including the mechanisms they used to raise funds. Despite facing these challenges, Cronje emphasized that he had earned no fees from Yearn and had never sold anything to U.S. residents.
After enduring the pressure of these allegations and the associated legal challenges for nearly two years, Cronje described the emotional and personal toll this investigation had taken on him. In his blog post, he recounted how he was forced to constantly defend his work, spending significant amounts of time and resources.
Ultimately, Cronje was left with a stark choice: continue battling these allegations without gaining any personal benefit or step away entirely. He chose the latter, concluding that the stress and sleepless nights were no longer sustainable.
A Brief Return to DeFi: The Launch of Sonic
After his departure in 2022, Cronje, along with co-founder Anton Nell, rebranded the Fantom blockchain into what is now known as Sonic (S). Sonic has quickly gained traction, surpassing $350 million in total value locked (TVL), marking a significant comeback for Cronje. Since the rebranding announcement, Sonic’s aggregated TVL has grown by 66%, signaling the growing popularity of the network.
In his final posts before quitting, Cronje had addressed the issue of DeFi regulation. He proposed two distinct verticals: decentralized smart contracts, which are nearly impossible to regulate effectively, and regulated crypto, including exchanges and brokers.
However, these messages were often misunderstood by the public, who incorrectly assumed Cronje had become aligned with regulatory authorities.
He hoped others in the space would not have to endure the same hardships he experienced. His story serves as a reminder of the ongoing tension between innovation and regulation in the cryptocurrency sector.
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