The Decentralized Finance (DeFi) craze has really brought the crypto space back to life, but simultaneously, there have been many bizarre, tragic, and outright insane incidents due to the intense speculative frenzy surrounding DeFi. One of the more insane incidents apparently occurred yesterday.
Developer Andre Cronje, who is a part of the dev team for the major DeFi project Yearn Finance, was developing a new DeFi project called Eminence, with the intention that Eminence would be an ‘economy for the gaming universe’.
Cronje was not done developing Eminence yet, and actually needed a few more weeks to launch it, but did put out some teaser ads about it on September 28 and then went to sleep. That is when all hell broke loose.
Basically, although Eminence was not launching yet, a test version of the project was online, and some people found it while Cronje was sleeping. Due to Cronje’s strong reputation, investors FOMO’d Eminence and quickly invested $15 million.
Then due to the code being unaudited, a hacker stole $15 million. Strangely enough, the hacker returned $8 million, perhaps out of mercy.
Shockingly, this all happened while Cronje was asleep, which just shows how quickly things can escalate in the DeFi world.
Now the $8 million that was returned is being refunded to users, and presumably Eminence will still launch in a few weeks once it’s code has been properly audited.
This is yet another case of a DeFi project gaining tremendous amounts of investments despite having unaudited code, leading to a disaster. Although in this case it’s not the developer’s fault since he wasn’t even trying to launch the project yet, and the project which did exist was a test version.
On a final note, perhaps the main lesson to take away from this is that developers should keep their projects on testnet until they are really ready to launch, rather than doing a test on the mainnet.