Markets News Report
November 07, 2023

Wintermute CEO Accuses NEAR Foundation of Reneging on Redemption Commitments

In Brief

Wintermute may pursue legal action after the NEAR Foundation declined full redemption of $11.2 million USN stablecoins, proposing a mere 20% buyback instead.

Wintermute CEO Accuses NEAR Foundation of Reneging on Redemption Commitments

Wintermute, a prominent market maker, has publicly criticized the NEAR Foundation for its handling of the USN stablecoin redemptions. Evgeny Gaevoy, CEO of Wintermute, claims the foundation has refused to honor its commitments, leading to potential legal action.

According to Gaevoy’s statements on social media, Wintermute assisted the FTX liquidator in selling $11.2 million worth of the NEAR stablecoin, USN. However, when they sought to redeem the amount, the NEAR Foundation reportedly only offered a 20% buyback, contrary to their prior assurances. Gaevoy’s dissatisfaction stems from the Foundation’s decision to halt support for the USN project due to operational challenges.

On the other side, Illia Polosukhin, CEO of the NEAR Foundation, has countered these allegations. Polosukhin asserts that Wintermute’s acquisition of USN from Alameda’s estate and subsequent redemption request were denied due to the questionable origin of the tokens, which may have ties to illegal activities.

Wintermute and USN

The NEAR Foundation has clarified that their refusal to transact with Wintermute is rooted in concerns over the potential illegality of the USN in question, suspecting Wintermute of seeking arbitrage opportunities through these dealings.

This dispute has spilled into the public arena, with Wintermute’s CEO openly expressing his discontent with how the NEAR Foundation has managed the USN redemptions. Gaevoy emphasizes that transparency and accountability are crucial in the post-FTX landscape, stating that by exposing this issue, he aims to prevent similar instances from recurring within the industry.

Wintermute stands firm on its position that the NEAR Foundation had initially committed to backing USN and had allocated funds for redemption through a protection program operated by Aurora Labs. Despite months of communication and a test redemption, the Foundation’s final stance was to offer only a fraction of the expected amount.

The ongoing situation raises significant questions about trust and reliability in the crypto sector, especially concerning stablecoin redemptions. Wintermute is gearing up to initiate legal proceedings against both the NEAR Foundation and Aurora Labs, aiming to protect its own interests and those potentially impacted in similar situations.

Gaevoy’s call to action for others who have faced redemption issues with the NEAR Foundation suggests a larger pattern of discontent and signals a crucial moment for the industry’s future regarding transparency and contractual fidelity.

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About The Author

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

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Nik Asti
Nik Asti

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

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