Curve Finance founder Michael Egorov continues to dump CRV tokens, having sold over 39 million CRV on the heels of the $47 million protocol hack.
Michael Egorov, the founder of Curve Finance, a decentralized exchange (DEX) for stablecoins and other low-volatility crypto assets, has sold 39.25 million CRV tokens worth $15.8 million via over-the-counter (OTC) deals to various buyers, according to Lookonchain, a blockchain surveillance resource.
Lookonchain revealed in a series of tweets that Egorov had sold CRV tokens to several industry leaders and entities in the crypto scene as he sought to reduce liquidation risks on the heels of the latest Curve Finance hack.
More and more institutions and investors bought $CRV via OTC!
Machi Big Brother bought 3.75M $CRV.
DWF Labs bought 2.5M $CRV.https://t.co/MQg382LigF bought 2.5M $CRV.
…Michael Egorov has sold a total of 39.25M $CRV via OTC and received 15.8M $USDT.https://t.co/hQBlW5WG6J pic.twitter.com/NMIQ2p05ZL
— Lookonchain (@lookonchain) August 1, 2023
Of the 39.5 million CRV sold, Egorov has sold 4.25 million CRV to DCF GOD, 5 million CRV to Tron founder Justin Sun, 3.75 million CRV to Jeffrey Huang (Machi Big Brother), 2.5 million CRV to Cream Finance, and 2.5 million CRV to DWF Labs.
Lookonchain also noted that Egorov is attempting to pay off his debt on Fraxlend, a DeFi lending platform, as a result of the high annual percentage yield (APY) of +140%. Egorov’s debt on Fraxlend was backed by CRV tokens, which had plunged after Curve Finance suffered a hack on Sunday.
The Latest Curve Finance Hack
The hackers exploited a vulnerability in the Vyper programming language, widely used in DeFi applications, to drain funds from four main liquidity pools on Curve. The total amount of cryptocurrency stolen was estimated at $47 million, but some sources reported higher figures of up to $100 million.
A number of stablepools (alETH/msETH/pETH) using Vyper 0.2.15 have been exploited as a result of a malfunctioning reentrancy lock. We are assessing the situation and will update the community as things develop.
Other pools are safe. https://t.co/eWy2d3cDDj
— Curve Finance (@CurveFinance) July 30, 2023
Curve Finance quickly identified the affected pools and asked users to withdraw their funds from them as a precaution.
It also contacted the Vyper team and other DeFi projects that use the same language to alert them of the vulnerability and urge them to upgrade their contracts. Curve Finance said it was working on minimizing or eliminating the impact of the hack and restoring normal operations as soon as possible.
The CRV token, the native token of Curve Finance, suffered a significant drop in price after the hack was announced. It fell by 17% in one day, from $0.76 to $0.63. CRV registered another 10% loss yesterday, dropping below the $0.60 territory. The asset trades for $0.59 at the time of reporting.
The token’s value was also affected by the fact that Egorov had borrowed more than $100 million across various DeFi lending projects, backed by over 427 million CRV. This raised concerns that if the token’s price continued to decline, it could trigger forced liquidations of his loans and cause further instability in the DeFi market.
The Curve Finance exploit is the latest hack in the crypto scene this year as the industry battles a series of security breaches. In April, crypto exchange Bitrue suffered an attack, leading to a loss of $22 million worth of crypto assets. More recently, hackers also targeted Atomic Wallet in June.
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