Sonic founder Andre Kronje wrote that the pressure from the United States Securities and Exchange Commission led his sudden departure from the Cryptocurrency industry in 2022.
One in New blog postKronje expanded a one -year struggle with the regulator, which eventually forced them to move away from public engagement with decentralized finance.
Konje, known for launching the year finance in 2020, said that he avoided selling tokens to deliberately raise funds or to clarify the regulatory investigation. However, in 2021, he received his first inquiry from the Securities and Exchange Commission, requesting information about investors and profit distribution of the year.
Despite not being a United States citizen and never doing business in the country, he complied with the request, collected extensive information in several weeks.
The SEC continued its investigation, sending additional letters, Chronje described as rapidly aggressive. Over time, to focus on a violation of an alleged securities, to question whether Finance’s vaults are qualified as investment vehicles. These inquiries, he said, consumed his time and resources, forcing him to stop the development work.
Chronje wrote, “Two years are needed to deal with this every month, and endless sleep night and stress,” Krronje wrote that he chose to remove the steps.
He emphasized that his departure was not due to dissatisfaction with DEFI, but a constant regulator toll.
Behind curtain
Despite stepping back from the public point of view, Kronje continued to work on blockchain projects behind the curtain. Now he says that he is close to starting a new DEFI initiative.
He also said that recent changes under the leadership of SEC made him feel comfortable sharing their experience, as previous investigators warned him against speaking.
“Looking at the new direction of SEC, I finally felt that I could really write about it, as I was strongly advised by the same investigators not to mention the investigation or increase these things, “Cronje wrote.
