In a surprising public revelation, Wintermute has made a significant accusation against the Near Foundation (NF) and Aurora Labs concerning the redemption process of the USN stablecoin. Wintermute's CEO, Evgeny Gaevoy, expressed dissatisfaction through a series of tweets, alleging that these entities failed to fulfill their obligations, both public and private, to exchange USN tokens for USDT. This situation has resulted in significant financial consequences for Wintermute and the potential establishment of a concerning industry precedent.
USN's Troubled Journey
Originally introduced as an algorithmic stablecoin akin to Terra's UST, USN underwent a shift to a non-algorithmic model supported by USDT due to market volatility. Despite these alterations and a subsequent shortage of collateral, the Near Foundation (NF) introduced the USN Protection Programme, delegating its management to Aurora Labs. Regrettably, the program has encountered challenges in fulfilling its commitments regarding redemptions.
The Unresolved Transaction
Wintermute, in its capacity as the asset liquidator for the FTX bankruptcy estate, sold 11.2 million USN with the anticipation of redeeming these tokens for over $11 million to benefit FTX creditors. This expectation was founded on assurances from the Near Foundation (NF) and private confirmations from Aurora. However, the subsequent decision not to honor these redemptions has left Wintermute in a state of uncertainty. Negotiations have culminated in a disappointing offer from NF, which amounts to only a fraction of the tokens' original value.
The Path Forward
By shedding light on the lack of accountability and transparency from the Near Foundation (NF) and Aurora, Wintermute is gearing up for legal action. Gaevoy's disclosure isn't just a plea for resolution but also a signal to the industry, emphasizing the significance of corporate responsibility and openness. The company is actively reaching out to others who share similar grievances and remains resolute in its stance, ready to adopt an adversarial approach if its pleas for redemption continue to be disregarded.This unfolding situation prompts questions about trust and integrity in the cryptocurrency market, as notable entities like NF and Aurora Labs come under scrutiny. Wintermute's commitment to transparency and adherence to ethical industry standards is evident as they navigate through this challenging chapter.
