Home
News
- 1 The NEAR Foundation and Aurora failed to redeem $11 Million in USN stablecoins.
- 2 The USN stablecoin was initially launched as an algorithmic stablecoin on April 25, 2022, by Decentral Bank.
The NEAR Foundation and Aurora are facing allegations of failing to fulfill an agreement to convert $11 Million worth of USN (USN) stablecoins, as claimed by Wintermute founder and CEO, Evgeny Gaevoy.
In a tweet posted on November 7, Gaevoy asserted that NEAR had not honored their commitment to facilitate the sale of $11.2 Million worth of the USN stablecoin on behalf of the FTX estate.
According to Gaevoy, Wintermute had been working in collaboration with FTX to liquidate its assets for the benefit of creditors. This involved the sale of $11.2 Million worth of USN.
Gaevoy contended that Wintermute had executed the transaction, which provided $11 Million to FTX creditors, based on an alleged agreement with the NEAR Foundation that USN could be redeemed on a one-to-one basis with Tether (USDT).
However, when Wintermute submitted its redemption request, NEAR allegedly refused to honor its commitments. As of Gaevoy’s claims, two and a half months had passed, and Wintermute had not received any USDT.
Gaevoy further alleged that Wintermute had received a final offer of 20% of the $11 Million. In response, Gaevoy asserted that Wintermute intended to explore “all legal avenues” against NEAR and Aurora, the entity responsible for facilitating the transfer of assets from the Ethereum network to the NEAR protocol.
The USN stablecoin was initially launched as an algorithmic stablecoin on April 25, 2022, by Decentral Bank. It positioned itself as an independently operated community-run project with no direct financial support from the NEAR.
However, in October, the foundation established a $40 Million fund aimed at supporting conversions between USN and USDT after USN encountered collateralization issues.
Gaevoy’s tweet appears to be a last-ditch and public effort to urge the NEAR Foundation to fulfill the redemption agreement. However, Gaevoy emphasized that if the foundation continued to act unreasonably in the matter, Wintermute was fully prepared to shift into a confrontational mode to address the situation.
The allegations surrounding the conversion of USN stablecoins raise concerns within the cryptocurrency community and highlight the importance of adhering to agreements and commitments in the evolving digital finance landscape.
The outcome of this dispute and its potential legal ramifications will be closely monitored as the crypto industry navigates its evolving regulatory and operational landscape.
Other than this, there is no update from any of the entities at press time.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
