Curve Finance Founder Egorov’s Sales Soar Past $140 Million

  • Curve Finance, a decentralized finance (DeFi) platform, suffered a significant hack, resulting in the theft of over $60 million in assets.
  • The platform’s founder, Michael Egorov, had previously borrowed a large sum in stablecoins against his CRV holdings, which were valued at $280 million at the time.
  • Following the hack, the sudden 30% drop in CRV price put Egorov’s large loan at risk of liquidation, sparking fears of a ‘black swan’ event in DeFi.

Our article delves into the recent hack of Curve Finance, the implications for its founder, Michael Egorov, and the potential ripple effects on the DeFi sector.

Curve Finance Hack: A DeFi Earthquake

Curve Finance, a prominent player in the DeFi landscape, recently fell victim to a substantial hack. The incident, which saw over $60 million in assets stolen, sent shockwaves through the DeFi community. The value of total locked assets on Curve dropped from $3.14 billion to $1.57 billion, and Curve’s stablecoin, crvUSD, lost its stability ratio.

Founder’s Financial Peril

Michael Egorov, the founder of Curve, was significantly impacted by the hack. Prior to the incident, Egorov had borrowed a large sum in stablecoins against his CRV holdings. At the time, his CRV collateral was valued at $280 million. The sudden 30% drop in CRV price following the hack put Egorov’s substantial loan at risk of liquidation, creating a potentially catastrophic ‘black swan’ event in the DeFi sector.

Damage Control and Debt Repayment

In an attempt to mitigate the situation, Egorov has since sold 142.6 million CRV, easing his financial burden. These sales were made over-the-counter at $0.40 (market price $0.61) to 30 institutions and investors, allowing Egorov to raise $57 million to repay his debts. Notable among these investors is Justin Sun. According to data compiled by Lookonchain, Egorov still has a debt of $48.7 million against a collateral of 270 million CRV across four different platforms.

Conclusion

The Curve Finance hack has not only highlighted the risks inherent in DeFi platforms but also underscored the personal financial risks for founders like Egorov. As the dust settles, the DeFi community will be watching closely to see how Curve and its founder navigate this crisis and what measures they take to prevent similar incidents in the future.

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Gideon Wolf
Gideon Wolfhttps://en.coinotag.com/
GideonWolff is a 27-year-old technical analyst and journalist with extensive experience in the cryptocurrency industry. With a focus on technical analysis and news reporting, GideonWolff provides valuable insights on market trends and potential opportunities for both investors and those interested in the world of cryptocurrency.
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