Curve Finance'CRV has plummeted in value due to CEO's financial troubles
Curve Finance creator Michael Egorov lost $140 million in CRV tokens owned by the platform, according to Arkham Intelligence. Egorov had leveraged roughly $96 million in stablecoins, predominantly crvUSD, placing his CRV tokens as collateral across five different lending services.
Arkham Intelligence pointed out that Egorov faces a yearly interest burden of $60 million to sustain his borrowings on Llamalend, which hosted more than half of his loans. The astonishingly high annual percentage yield (APY) of nearly 120% at Llamalend is attributed to the scarce availability of crvUSD, with Egorov having borrowed over 90% of the platform's stablecoin reserves. The CRV token experienced a 24% decline in value between June 12th and 13th, triggering the liquidation of his stakes.
The downfall of the CRV token's value today breached Egorov’s liquidation limit, leading to the complete liquidation of his nine-figure loan across five lending protocols.
This series of events left Llamalend grappling with more than $1 million in unbacked debt. Nevertheless, Egorov managed to settle this by transferring 30 million CRV tokens to NextGen Digital Venture's partner, known as Christianeth, in exchange for $6 million.
Back in July 2023, following a security breach in Curve's factory pools, the CRV token's value took a nosedive, putting Egorov at risk of liquidation once more. As documented by observer Lookonchain, on August 3rd, 2023, the Curve Finance innovator liquidated 72 million CRV tokens through over-the-counter (OTC) transactions with 15 purchasers, including DWF Labs, Justin Sun, and Wintermute. These sales, at a price of $0.40 per token, accumulated nearly $29 million, aiding in the repayment of his on-chain obligations.
