- The reason lies in a large USDT and USDC loan secured by CRV
- Community suspects that Curve founder Mikhail Egorov is behind it
- If this is true, the said loan could become bad debt as Egorov himself will face trial
On Monday, June 12, analyst firm Gauntlet put forward a proposal to freeze CRV in Aave v2 and reduce LTV to zero. This is in response to a large CRV secured loan that Curve Finance founder Mikhail Egorov allegedly took out.
It all started when the holder of this account here took out a $67.7 million loan on Aave v2 in USDT and USDC.. He used 185 million CRV and 4 million TUSD as collateral.</nbsp;
The account is believed to be linked to Curve Finance founder Mikhail Yegorov.. Recall that he controls 290 million CRV, just over a third of the entire token offering.
In practice, this means that any action by Egorov with his CRV portfolio would have a huge impact on the asset’s price. Meanwhile, the founder of Curve has been accused of fraud.
Three major venture capital firms have filed suit against him. It says that Egorov misled them and tricked them into a significant amount of money.
With this background, Gauntlet fears that the situation with Egorov risks causing significant damage to the protocols.. The company proposes to freeze the reserve until all the circumstances are clarified, and also to reduce the ratio between it and the cost of the loan (LTV ratio) to zero.
We note that the proposal was not supported by all. Some commentators said that such an initiative goes against the key principles of DeFi. This includes, for example, someone like “pray.eth”:
An interesting fact, Mikhail Yegorov and his wife recently purchased another estate in Australia. The total area of their property, located in the neighborhood, is more than 5.6 thousand square meters.
What about CRV $1 Curve DAO CRV -10.33% Market cap $495.1m Vol. 24H $62.7m Exchange partner
, the asset has fallen more than 11% in the last day: