coinfomania.com
Over the weekend, Michael Egorov, the founder of the decentralized project Curve Finance, deposited 38 million CRV tokens (worth $24.5 million) into the lending protocol, Aave. This brings the total number of CRV tokens owned by Egorov to 32% of the asset’s circulating supply.
Curve Finance Founder Holds 32% Supply
In April, Michael Egorov deposited CRV tokens into the lending project Aave as collateral to take a loan of $71 million worth of stablecoins and sent them to the crypto exchange Bitfinex. As the CRV token’s price dropped by 16%, it became necessary for Egorov to add more tokens to the pool to avoid liquidation. The open position currently has a health rate of 1.65.
After adding $24 million worth of CRV tokens to the pool, his total CRV holdings amounted to 290 million CRV tokens, worth $187 million. According to public data, this nears one-third of CRV’s circulating supply.
The Curve Finance boss has become a crypto whale for the token by holding a substantial amount of CRV tokens. This implies that a buy or sell action made by Egorov will significantly affect the price of the asset for good or bad. Such a move is often termed unhealthy for the ecosystem as it fosters centralization since power is in the hands of a few.
Currently, the CRV token trades at $0.65, representing about a 5% increase from its price over the weekend and a 21% decrease over the past week.
Egorov Faces Lawsuit
Meanwhile, in other news, Egorov faces lawsuit charges over allegations involving fraud. United States-based venture capital firms ParaFi Capital, Framework Ventures, and 1kx, filed the lawsuit against the Curve Finance boss.
The lawsuit, which was filed in April in the Superior Court of California, San Francisco, claimed that Egorov defrauded the venture capital firms out of nearly $1 million worth of funds by deceiving them with the promise of a stake in Curve Finance.
The trio of companies also alleged that Egorov left his U.S. residence and relocated to Switzerland to flee the legal crackdown.
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