A group in the DeFi community is planning to sue renowned Yearn Finance (YFI) developer Andre Cronje for his involvement and promotion in an incomplete DeFi project that ended in disaster. These are some of the consequences of the hacking of the gaming platform Eminence (EMN) last September, from whose contract some 15 million dollars were stolen.
The group calls itself EMN Investigation and has announced its objective through a publication on Medium, where they stated that are raising capital to finance demand. Andre Cronje is not the only one in the eye of the organization, but also the developer of Yearn Finance, Banteg, and the tweeter and promoter of DeFi, Kirby Blue.
Those involved are accused of having promoted an experimental DeFi project and “a token with no real value”, as the three personalities tweeted about the development of the EMN platform. A gambling initiative based on decentralized finance (DeFi) that would be part of the Yearn Finance (YFI) protocol, but within hours of its experimental launch, its smart contract was hacked and about 15 million dollars was stolen from it.
This money was deposited in Eminence because Cronje, as the developer of the project, implemented the EMN contract through Yearn Finance and put it to operate on the Ethereum mainnet. Due to this, users of the DeFi ecosystem could acquire tokens of this project, although it was still weeks away to be ready and its smart contract was not the final one.
Due to the enormous popularity and fame Andre Cronje enjoys as a decentralized finance developer, a significant number of users rushed to buy the first Eminence tokens. In this way, in a matter of hours an incomplete smart contract mobilized some $ 15 million in tokens.
Cronje’s version is that in the early morning, when he was sleeping, a group of hackers managed to exploit a vulnerability in the smart contract and made a flash loan with the 15 million dollars. The project had this error since it had not been audited before being released to the public, a practice that has earned criticism and even death threats to the renowned developer of Yearn Finance.
The hackers have returned 8 million dollars of the 15 that they took from the contract, they were transferred to an address of Andre Cronje and he left them at the disposal of the Eminence treasury for distribution among the victims. The entire money has not yet been returned to those affected, so the group EMN Investigation wants to take the legal route to hold those involved in promoting the project accountable.
The organization indicates that it will keep its financing campaign open for about 30 days. He also pointed out that “100% of each donation will be used to finance demand.” Although EMN Investigation ensures that he will represent the victims, does not exist a recognizable face of this group and they have not specified which law firm they will hire with this money.
What is Andre Cronje accused of for participating in Eminence?
EMN Investigation notes that Andre Cronje promoted an experimental project and was not responsible for the repercussions. The group cites several Cronje tweets where the developer talks about a surprise launch and retweets EMN advertising, as well as highlighting that he enabled a contract that was not yet complete and had flaws. However, at no point did he specify that the project was not yet ready, until the hack occurred and he indicated that he had three weeks to go to finish it.
The organization also accuses Yearn Finance developer Banteg of “being selling (EMN) tokens on Uniswap until it was hacked.” On the other hand, the tweeter Blue Kirby, who has been widely related to the YFI communication, promoted the contracts on his personal account and even gave instructions on how to buy a token that was not ready for operation.
In this sense, EMN Investigation accuses the three involved of promoting a token that had no real value. “If EMN was a test, it had a value of 0 as a token,” says the statement and then continues: “However, Andre saw $ 15 million entering (the contract) without saying anything.” This event had already been criticized by members of the cryptocurrency community when the hack occurred, considering that it was Cronje’s irresponsibility to launch a contract to the main network that it had finished coding hours before.
The statement asks questions like “Why wasn’t the token warned that it was worthless?” or “Why did you continue to promote?”, underlining that in another context and with other developers, this whole movement would be considered “a scam”. The members of EMN Investigation they leave open the possibility that it was all “a viral experiment that went wrong”, but they say they want justice to be done.
Andre Cronje and Blue Kirby have been away from social media after the hack occurred. The Yearn Finance developer commented on a tweet that he was receiving death threats for the whole event, so he decided to distance himself on the matter. Recently reappeared on your account to confirm that you continue to work in the DeFi ecosystem until further notice. On the other hand, Blue Kirby yes deleted completely your tweet.
Another fork for Yearn Finance may be on the way
In addition to demanding justice for the theft of the 15 million dollars, the statement from EMN Investigation suggests a new fork of the Yearn Finance protocol. The group is calling for the platform to take a new direction, noting that, after the fork, 50% of the YFI will be distributed “among donors” of capital for the demand.
Likewise, They promise that the other 50% of YFI will be awarded to the victims of the hack to compensate the losses generated by Eminence. A strategy of which no further details were given, nor how it will be sustainable in the long term as a new DeFi project.
The reality is that this is not the first fork of Yearn Finance, much less the most recent request. Another group of developers and crypto experts announced at the weekend the launch of YFI3, a fork of the YFII protocol that has gained popularity in recent months. Although this initiative appears to be unrelated to the Eminence hack, Yearn Finance’s new reality is increasingly fragmented with this latest unfortunate event.