Posted 10 months ago | by @devadmin
The decentralized finance (defi) community is upset with Yearn Finance founder Andre Cronje over Cronje’s secret Eminence (EMN) project after catastrophic losses due to an incomplete unaudited smart contract, and they want to sue him.
According to a recent blog post published on Medium, a group of defi community members plans to sue Yearn Finance founder, Andre Cronje, and fork YFI as well. Eminence Finance (EMN) allegedly a project that didn’t even launch was drained for $15 million in funds after a hack exposed a vulnerable contract to an exploit known as the flash loan bug.
Cronje said he was lying low on social media after the incident. But many believe that he may have committed fraud since developers of the project were hyping it, even though Cronje himself said the project wasn’t ready after the hack.
“We are crowdfunding capital to finance a lawsuit against Andre Cronje, Kirby, and Banteg over the EMN scandal on behalf of the victims,” explains a blog post written by a group calling itself ‘EMN Investigation.’ EMN investigation added:
“Andre Cronje, the founder of Yearn Finance, hyped a surprise launch. Eminence Finance contracts were deployed by the Yearn Finance deployer, and Andre tweeted and retweeted as liquidity flowed in.”
The group which appears to be anonymous says that Blue Kirby, the head of communications at Yearn Finance, gave detailed instructions on how to leverage the contracts and promoted Eminence prior to launch. Despite Cronje saying the contracts weren’t ready and tested. However, others alleged that Kirby is only a YFI fanboy.
The group also accuses the Yearn Finance developer, Banteg, of “selling tokens bought from the contract to Uniswap right until the contracts were hacked.”
“The hacker drained the entire $15 million that had been locked up in liquidity by using a flash loan exploit,” the EMN investigation team detailed. “The hacker then returned $8 million to Andre, and was misappropriated.” The blog post is filled with screenshots, tweets, and market charts showing what the group proclaims was “fraud.”
However, that same blog post accusing Cronje of a crime is offering a token and asking for donations to fund a lawsuit against him.
“As a way to thank you for your donation, we will take a snapshot at the end of the crowdfunding campaign, and airdrop 50% of the supply of a fork of YFI to donators. The other 50% of the supply will be airdropped to the victims of the EMN scandal. We will create a new DeFi ecosystem, but without the bad actors.”
As of October 10th, the total value locked in Defi protocols was nearly $11 billion.
There is no question that DEFI is going to be the future of finance, however, DEFI is a wild world and is far from ready for mass adoption as there’s far too many rug pulls happening. Was EMN a rug pull, or viral launch gone bad? That’s the question that EMN investigation are asking.
Even Ben got scammed for $40K in YUNO Finance, you got to be careful out there and not get scammed.