The founder of Curve, Michael Egorov, is seemingly looking at unexpected counterparties to manage his sinking DeFi loans. These steps come in a bid to pay off his towering debt in the DeFi space by selling CRV tokens at a discounted rate. However, the sale terms and the involved parties shine a new light on the entrepreneurial savviness that might, at times, give a pause for thought.
The immediate concern with Egorov’s approach is his selection of liquidity sources. He has allegedly sold approximately 50 million CRV tokens at a lower than market rate to several buyers, which includes a sale clause that allows them to sell if the prices reach $0.80. Notably, it involves prominent figures such as Justin Sun, the founder of Tron, currently in the crosshairs of the United States Securities and Exchange Commission.
However, the peculiar story doesn’t stop there. There were other notable buyers whose involvement sparks interest. Jeffrey Huang, a tech entrepreneur known as “MachiBigBrother,” has been accused of embezzling a significant amount of ETH valued at over $41 million. Although Huang denies the charges and has taken legal action against the slander, these accusations still raise eyebrows. Add to that the participation of DeFi lending protocol Cream Finance and an individual known as “DCFGod”, associated with a nonfungible token (NFT) project, and the tales become entangled.
Egorov’s unusual counterparty selections had the CEO of Wintermute, Evgeny Gaevoy, remarking on the questionable nature of these dealings, implicitly serving as a note of caution regarding this approach.
At the core of this story is the immense DeFi loan Egorov took out using his stash of CRV. The exploit that followed the protocol led to a drastic drop in CRV prices, sparking worries of a DeFi disaster with the potential flooding of CRV in the market. However, some of the debts have been repaid, and the token has somewhat recovered.
While Egorov managed to pay off more than $17 million in stablecoin loans, a daunting wall of debt remains, focusing a spotlight on the high-risk world of DeFi and the possibility of unexpected counteractions when faced with overwhelming financial challenges.
At the same time, the tale of Egorov’s efforts paints a vivid picture of the wild west ethos that still permeates the DeFi space and the lengths to which certain individuals will go when facing significant financial turmoil. As the news unravels further, onlookers can only wait to see the repercussions of this financial dance with high stakes.
Source: Cointelegraph
