The founder of Wintermute, a major market maker in the crypto market, @EvgenyGaevoy, named the public chain Near and its derivative project Aurora Labs as no longer friends. These disputes arise from the fact that Wintermute took over the stablecoin USN of the Near public chain from FTX creditors, but was refused redemption. Wintermute cannot redeem Near stablecoin

Wintermute founder @EvgenyGaevoy says the Near Foundation (NF) and Aurora Labs have failed to fulfill their USN redemption commitments.

Although the damage is small, @EvgenyGaevoy believes this is harmful to the public interest and needs to be spoken out.

@EvgenyGaevoy explained that USN, the stablecoin launched by Near, was originally designed to be similar to Terra’s UST. However, after the collapse of UST, USN transformed into a non-algorithmic stablecoin and was supported by USDT. It eventually ended due to repeated minting and inconsistency with the collateral. This project was originally funded by Aurora Labs, which received NF awards, and Near also proactively provided funds to address the gap.

Helped FTX creditors liquidate but was cut off

@EvgenyGaevoy stated that Wintermute has been working with the FTX restructuring team since this spring to liquidate assets, including USN worth $11.2 million.

Wintermute provided $11 million to FTX creditors following its deal with FTX.

During the negotiation process with Near and Aurora, Wintermute confirmed that USN can be redeemed into USDT. But when it came time to redeem it, Near refused.

@EvgenyGaevoy said that since August, USN has not received the USDT that should be redeemed.

Only willing to give 20%, Wintermute has no choice

@EvgenyGaevoy said the final quote Wintermute got was 20% of that amount.

Wintermute also proposed an alternative plan, hoping to use staking NEAR tokens as an alternative to negotiation, but did not receive agreement.

Near goes back on one's word, Wintermute warns

@EvgenyGaevoy said Aurora was accepting redemption requests in August until suddenly last week saying it would not agree to redemptions, and Near felt they had the right to keep $11 million to themselves, doing Wintermute a disservice.

To this day @EvgenyGaevoy still can’t figure out what the reason is and intends to seek legal means to solve it.

In order to avoid misunderstandings in the community, @EvgenyGaevoy also emphasized that he did not deploy any short positions of NEAR tokens.

This article: Market maker Wintermute was cut off tens of millions of dollars! Bangshang Near Team: We are no longer friends first appeared on Chain News ABMedia.