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NEAR backed out from a $11 million stablecoin redemption deal with Wintermute

TL;DR

  • Wintermute founder and CEO Evgeny Gaevoy claims that the Near Foundation and Aurora reneged on a deal to convert $11 million worth of USN (USN) stablecoins.
  • According to Gaevoy, Wintermute had been working with FTX on liquidating its assets for creditors, including the sale of $11.2 million in USN.
  • On April 25, 2022, Decentral Bank Launched USN as an algorithmic stablecoin, describing itself as an independently controlled community-run enterprise with no direct financial help from the Near Foundation.

Among the major recent events in crypto involve NEAR and Wintermute’s platforms revolving around their stablecoin redemption deal that’s worth millions. Evgeny Gaevoy announced these proceedings and highlighted the development of the deal, and took to posting on X and shared his detailed review. 

Such events could affect the crypto realm, especially stablecoins, either in the short term or the long term. However, this is yet to be discovered since the NEAR foundation still hasn’t commented on the details of the deal with Wintermute. This news comes in as the NEAR Foundation took strides into funding various stablecoins in October. 

NEAR Foundation backing down from a stablecoin conversion deal 

According to Wintermute’s CEO and founder, Evgeny Gaevoy, the NEAR Foundation has recently reneged on a unique offer of converting its stablecoins that are worth $11 million. Together with Aurora, the two platforms allegedly declined the suitable offer to convert its USN stablecoins. 

On November 7, a post on X (formerly Twitter) by Gaevoy lamented that the NEAR Foundation did not honor the commitment to the intended sale of $11.2 million worth of USN in light of the FTX estate. The Wintemute CEO explained:

 We believe that Near Foundation (NF), in cooperation with Aurora Labs, have failed to honor their public and private commitments in regards to USN redemptions.

Evgeny Gaevoy

He added that their relationship with the NEAR Foundation and Aurora Labs is tainted and explained “how we are not really friends with NEAR and Aurora Labs going forward.”

Gaevoy highlighted that Wintermute had been in the works with FTX, aiming to liquidate its assets for creditors, including the sale of the USN stablecoins. He elaborated that keeping things quiet is a fundamental sensible approach to avoiding adversarial issues. This was after two and a half months since Wintermute executed the transaction, but I still haven’t received even a single USDT.

The Wintermute founder said:

 If you have been following the SBF trial, that’s exactly what Alameda/FTX did when they got “hacked” by people using “very profitable trading strategies” in $MOB and other tokens. However, doing things this way just doesn’t feel right to me in the post 3AC/Terra/FTX/Alameda world.

Evgeny Gaevoy

Details of Gaevoy’s public announcement 

Gaevoy also explained that Wintermute had initially executed the transaction that provided FTX creditors with $11 million following an alleged agreement with the NEAR Foundation. The deal details redemption of USN for Tether, which would be on a one-to-one basis. 

Additionally, Gaevoy claimed that his company received a final offer of 20% of the initial deal. He explained that legal action will be pursued against Aurora Labs and NEAR. Aurora Labs is implicated due to its involvement in allowing the transfer of ETH assets from Ethereum‘s network to the NEAR Foundation protocol.  

Last October, the NEAR Foundation sought to invest in USN and opened up a $40 million support fund for USN to USDT conversion. This was after the USN stablecoin became undercollateralized. USN was initially launched in late April last year by the Decentral Bank. 

The firm termed itself as an independently operated community. It initially had no direct financial assistance from the NEAR Foundation. 

In his post on X, Gaevoy intended his announcement to be a last and final call to request the NEAR Foundation to complete the translation redemption and honor the deal. He posted:

 I’ll finish this thread with the last and public attempt at the resolution asking Near Foundation to complete the redemption. However, if NF continues to be unreasonable about this situation, we are fully committed to switching into a full-time adversarial mode.

Evgeny Gaevoy

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Florence Muchai

Florence is a crypto enthusiast and writer who loves to travel. As a digital nomad, she explores the transformative power of blockchain technology. Her writing reflects the limitless possibilities for humanity to connect and grow.

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