Michael Egorov, the founder of Curve Finance, has made significant strides towards clearing his $80 million debt through Over-The-Counter (OTC) sales of CRV tokens. According to an August 5 report by on-chain data analyst Ember, Egorov sold an additional 8 million CRV tokens to five investors in the past few hours.
Potential DeFi Crash Averted: CRV Price Rises 10% as Curve Finance Founder Clears Debt and Hackers Return Funds
Since the commencement of OTC CRV token sales on August 1, Egorov has sold a total of 114.025 million CRV tokens to 24 investors and institutions, raising $45.61 million. Major players like Wintermute Trading, DWF Labs, Justin Sun (founder of Tron), yearn.finance, and Cream Finance are among those who have purchased CRV tokens from Egorov. These sales have assisted him in repaying some of his borrowings from Aave, Abracadabra, FraxLend, and Inverse Finance, as per DeBank data.
There were concerns that if the CRV price dropped to $0.368, Egorov would face liquidation pressure, forcing DeFi platforms such as Aave to sell CRV collaterals. This could potentially trigger a cascading effect leading to a DeFi market crash.
Hackers Return Stolen Funds
In a recent hacking incident, Curve Finance lost $61 million in crypto assets from multiple pools. However, the hackers have started returning the stolen funds after Curve and other DeFi protocols announced a 10% bounty for the return of the funds, promising no prosecution.
In an on-chain message, the hacker stated, “I’m refunding you not because you can find me, but because I don’t want to ruin your project… I’m smarter than all of you.”
Following these developments, the CRV price has jumped 10% in the last 24 hours, trading at $0.62 at the time of writing. The 24-hour low and high are $0.571 and $0.628, respectively.
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