Curve Founder Still Owes $80 Million Despite Raising Nearly $30 Million in the Past Two Days

Curve‍ Finance founder Michael Egorov‌ has almost paid off his $80,000,000 debt through⁣ a new round of over-the-counter sales of Curve token (CRV).

According to Twitter user EmberCN, Wintermute Trading bought 25,000,000 CRV ‍tokens in two separate transactions for $10 million.

Wintermute bought the tokens at ⁣a price of ​40 cents each in an‌ OTC deal.​ They trade for​ 58 cents on the open markets, ⁤according to data from AskFX.

Reserve Protocol and Gnosis Chain are also ‌current ​buyers of CRV tokens.

Data from​ blockchain analytics firm DeBank‍ shows that the money was used to repay some, but not all, of his loans at⁣ Aave Abracadabra FraxLend Inverse Finance.

Egorov and others fear contagion should CRV’s price reach $0.368. Gauntlet, the DeFi risk management firm,‍ said on forums that Aave’s CRV ⁤collateral was being sold in a low-liquidity market. This step ⁣is considered risky.

Nick ⁤Ruck told AskFX that while some claim ‌Curve’s⁣ OTC transactions decentralize the‍ token,​ the majority of traders are institutional ⁣firms or whales. It’s not a bad ⁤thing, but it does enable risky ⁣behavior. Protocol‌ founders can count on the industry to protect them from contagion from ​irresponsible lending.

Indices ⁢reports that CRV’s price has remained stable at 58 cents over the past⁤ 24 hours, ⁣after​ falling more than⁤ 20% a few days ago since its first exploit.

UPDATE (4-Aug-04 04:34 UTC).⁣ Update headline and story to reflect latest numbers.