NEAR Foundation and Aurora Accused of Breaking $11 Million USN Stablecoin Promise
The NEAR Foundation and Aurora are facing allegations of reneging on a commitment to convert $11 million worth of USN stablecoins. The claim comes from none other than Wintermute founder and CEO, Evgeny Gaevoy, who made the accusations in a Twitter post on November 7.
According to Gaevoy’s assertions, NEAR Foundation (NF) had initially agreed to facilitate the conversion of $11.2 million worth of its stablecoin, USN, for the FTX estate. However, they allegedly later refused to honor this commitment. Gaevoy’s public statement shed light on the situation, expressing frustration and disappointment with NF and Aurora’s actions.
To reiterate, I see this situation very clearly as:
– NF committed to backstop USN and earmarked money for it
– Aurora accepted the redemption in August (and only last week backtracked on it)
– NF decided they have the power to keep the $11M to themselves instead of…
— wishful cynic (@EvgenyGaevoy) November 7, 2023
Gaevoy’s summary of the situation highlighted the following key points:
- NF had committed to backstop the USN and allocated funds for this purpose.
- Aurora had accepted the redemption request in August but recently reversed its decision.
- NF appeared to have decided unilaterally to keep the $11 million for themselves rather than honoring their commitments, both public and private.
Gaevoy pointed out that this refusal to convert their USN stablecoins into USDT, as initially promised, had caused direct harm to Wintermute. He expressed his concerns about the lack of transparency and accountability in how the program had been managed by Aurora and NF.
The Wintermute CEO emphasized that Wintermute had relied on the public and private messaging by both Aurora and NF to build their USN position. They only sought to convert their USN after a successful test redemption and two months of waiting. However, NF allegedly refused to fulfill their obligation without providing a logical explanation, leaving Gaevoy to speculate about the reasons behind this decision.
Gaevoy hinted at the possibility of incompetence as an explanation but left room for readers to imagine more troubling motives. In response to the alleged breach of commitment, Gaevoy declared that Wintermute would pursue all legal avenues against both NEAR Foundation and Aurora, making it clear that they had the means and options to do so.
He also extended an invitation to other parties who may have faced similar issues with NF or experienced difficulties in redeeming their USN stablecoins. Gaevoy’s public call to action suggests that Wintermute is not alone in its grievances.
To add a layer of complexity to the situation, Gaevoy clarified that Wintermute had no exposure to NEAR. Therefore, the issue was not about financial conflicts of interest but rather about what they perceived as an unjust decision by NF and Aurora.
Wintermute’s claim that NEAR Foundation and Aurora allegedly reneged on their commitment to convert USN stablecoins is a significant development in the crypto world. As legal proceedings and investigations unfold, the crypto community will be closely watching to see how this situation evolves and whether it sets a precedent for accountability and transparency in the industry.
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