July 11, 2024
Wintermute CEO Accuses Near Foundation and Aurora Labs of Breaking Deal to Convert USN to USDT
Latest Cryptocurrency News

Wintermute CEO Accuses Near Foundation and Aurora Labs of Breaking Deal to Convert USN to USDT

Wintermute founder and CEO, Evgeny Gaevoy, has publicly accused the Near Foundation and Aurora Labs of reneging on a deal that would have allowed $11.2 million worth of USN, a Near protocol-native stablecoin, to be converted to USDT. Wintermute had acquired the USN tokens from Alameda Research and entered an agreement to participate in the redemption of the stablecoin through the USN Protection Program (USNPP), which was created by Aurora Labs following the decision by developer Decentral Bank to sunset USN in October 2022.

According to Gaevoy, Wintermute was initially tasked with facilitating the sale of approximately 11.2 million USN to FTX creditors, with the expectation that they would later be able to redeem USN for USDT at a 1:1 ratio. However, Wintermute claims that Near Foundation did not honour their commitments and only offered 20% of the initially promised amount.

Aurora Labs responded by stating that Wintermute’s redemption request did not align with the intended purpose of the USNPP, and they were within their rights to decline it. Gaevoy asserted that Wintermute offered alternative solutions but received no cooperation from the Near Foundation.

Gaevoy indicated that Wintermute will pursue legal action against both teams and is “fully committed to switching into a full-time adversarial mode.” Despite this, he noted that Wintermute has no trading position on NEAR, and any legal action would not involve entering into a short position in NEAR tokens, as it would dilute the overall message.

The situation highlights the challenges and potential disputes that can arise within the cryptocurrency and blockchain industry, particularly in the context of complex agreements and redemption programs.

Image: Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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