DeFi Crash Avoided: CRV Price Soars 10% As Curve Founder Pays Debt And Hacker Returns Funds
Curve Finance founder Michael Egorov sells 8 million CRV to 5 investors again through over-the-counter (OTC) to pay off his $80 million debt. Meanwhile, Curve Finance pools hackers agreed and started to return funds in exchange for a 10% bounty announced by Curve and other DeFi protocols to prevent a major collapse of DeFi.
Curve Founder Expedite To Pay Off Debt
Curve Finance founder Michael Egorov is almost halfway to paying off his $80 million debt through OTC sales of CRV tokens.
According to a post by on-chain data analyst Ember on August 5, Curve Finance founder Michael Egorov sold 8 million CRV to 5 investors again in the past few hours. Since the sale of CRV through OTC began on August 1, Curve founder has sold 114.025 million CRV to 24 investors and institutions in exchange for $45.61 million in funds.
Investors and institutions including Wintermute Trading, DWF Labs, Tron founder Justin Sun, yearn.finance, and Cream Finance have purchased CRV tokens in OTC from Michael Egorov. It helps him pay off some of his borrowing from Aave, Abracadabra, FraxLend, and Inverse Finance, as per DeBank data.
Michael Egorov is under liquidation pressure if CRV price hits $0.368. It will cause DeFi platforms such as Aave to sell CRV collaterals, which could trigger contagion and potentially a DeFi crash.
Also Read: Valkyrie Converts Filing To Bitcoin and Ethereum ETF: Bloomberg Analyst
Curve Finance Hackers Returning Funds
Curve Finance hackers exploited multiple pools, taking away $61 million in crypto assets. However, hackers have started returning funds after DeFi protocols including Curve announces a 10% bounty for returning funds in exchange for no prosecution.
“I saw some ridiculous views, so i want to clarify that I’m refunding you not because you can find me, it’s because I don’t want to ruin your project, maybe it’s a lot of money for a lot of people, but not for me, I’m smarter than all of you,” the hacker said in an on-chain message.
CRV price jumps 10% in the past 24 hours, with the price currently trading at $0.62. The 24-hour low and high are $0.571 and $0.628, respectively.
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