We are sure we have heard about crowdfunding a business venture or a welfare idea, but this is something new! Although not in the strictest conventional sense, a group of investors is crowdfunding to bring a lawsuit against the Yearn. Finance chief and founder Andre Cronje. The lawsuit has been planned over the unreleased as well as the unfinished Eminence Protocol (EMN) and its hack.
The crowdfunding to raise money for the lawsuit will end on November 9th. The group said that all of the funds raised will be used to prepare the EMN investigation to sue Cronje, Yearn developer ‘banteg,’ and Twitter user and Yearn supporter Blue Kirby. The group further added:
“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 donors. 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.”
Let’s dig some background before we shoot further. On September 29th the EMN protocol was hacked. The noise of the KuCoin hack was so loud that this hack couldn’t garner a lot of eyeballs. Yet due to the hack Eminence, an unreleased project built by Yearn’s Andre Cronje has been drained of $15 million.
Eminence was considered as an unfinished economy for the gaming multiverse built by Yearn. Not long after its progress, it was discovered by miscreants when the developer of the project posted art teasers for the project to Twitter. Looking at this upcoming project, the Twitterati couldn’t conceal their excitement for long and the fever caught up with them. The community indulges in some serious FOMOing with roughly $15 million being plugged in the unreleased EMN protocol. But, the protocol’s funds were immediately drained out. And adding to the shock was the hacker transferred $8 million of the funds back to Cronje’s yearn deployer at the time the developer woke up to the new day.
When all this happened Cronje assured that the funds will be given back to the users and that the protocol release isn’t planned until another three weeks. The EMN investigation also proclaimed that the promotion of the project was a bit hasty. They believe that if the project was still a test with no value, then the three involved should not have promoted the project with so much zest and excite people to invest. The group added:
“If EMN was a test, it had zero value as a token. Yet Andre watched as $15 million poured in without a word. But kept hyping the project by retweeting. Why didn’t he at least warn the Yearn Finance team that they were buying and selling a worthless test token? If developers from any other team started hyping and selling a test token, they would be accused of fraud and the entire team would lose legitimacy. At best, this was a viral launch gone bad, at worst, it was a rug pull.”
As a preventive measure, Cronje pulled out of social media after death threats. Blue Kirby has since deleted his Twitter. Despite all this $YFI continues to rally strongly with a surge of 58%.