Michael Egorov, the founder of Curve, has sold an additional 7.5 million CRV via an over-the-counter (OTC) transaction and paid a $3 million debt in USDT on Aave, a decentralized lending platform on Ethereum.
CRV is the native token of Curve, the stablecoin decentralized exchange.
Michael Egorov sold another 7.5M $CRV via OTC and repaid 3M $USDT on #Aave just now.He currently has $82.6M in debt:51.24M $USDT on #Aave;12M $MIM on #Abracadabra;9.19M $FRAX on #Fraxlend;9.4 M $DOLA on #Inverse;740K $XAI on #Silo.https://t.co/GBHVXzFuUx pic.twitter.com/LrNHOpPTRn— Lookonchain (@lookonchain) August 2, 2023
Egorov still owes $82.6 million, spread across different platforms: $51.24 million in USDT on Aave, $12 million in MIM on Abracadabra, 9.19 million in FRAX on Fraxlend, $9.4 million in DOLA on Inverse, and 740,000 XAI on Silo.
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Curve founder has more debt to pay
Lookonchain data also highlighted Egorov’s recent token sales to Yearn Treasury and Stake DAO Governance, totaling 59.5 million CRV sold to 13 institutions and investors in the last two days.
In the past 3 hours, the #Curvefi founder(Michale Egorov) sold 3.75M $CRV to Yearn Treasury and 1.25M $CRV to Stake DAO Governance via OTC again.Michale Egorov has sold 59.5M $CRV to 13 institutions/investors for $23.8M in the past 2 days.https://t.co/FOj4rrHTYa pic.twitter.com/VsZ0qsqAll— Lookonchain (@lookonchain) August 2, 2023
Community responses to this news vary, with some speculating that Egorov’s friends are bailing him out and others commenting on the rapid decline of CRV.
More and more institutions and investors bought $CRV via OTC!Machi Big Brother bought 3.75M $CRV.DWF Labs bought 2.5M $CRV.https://t.co/MQg382LigF bought 2.5M $CRV.…Michael Egorov has sold a total of 39.25M $CRV via OTC and received 15.8M $USDT.https://t.co/hQBlW5WG6J pic.twitter.com/NMIQ2p05ZL— Lookonchain (@lookonchain) August 1, 2023
Recent blockchain data shows Tron founder Justin Sun and Jeffrey Huang, among other crypto players purchasing CRV at a discount via OTC in the last few days.
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Recovering from the exploit
Curve Finance suffered a security breach on July 30 due to a programming bug that put around $100 million worth of cryptocurrency at risk.
A number of stablepools (alETH/msETH/pETH) using Vyper 0.2.15 have been exploited as a result of a malfunctioning reentrancy lock. We are assessing the situation and will update the community as things develop.Other pools are safe. https://t.co/eWy2d3cDDj— Curve Finance (@CurveFinance) July 30, 2023
This forced CRV prices lower, and it was highly likely that Curve’s founder, Michael Egorov, who holds significant outstanding debts, would have been liquidated. He held several large positions; one of the most notable was his $70 million borrowing position on Aave and $12 million on Abracadabra.
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