Jun Du, co-founder, Huobi, a crypto exchange, purchased about 10 million Curve DAO Tokens (CRV) for four million dollars from Michael Egorov, founder, Curve Finance, who is looking for ways to reduce his exposed loan position, stated Cointelegraph.
Sources revealed that on August 1, 2023, Du mentioned that he intends to acquire 10 million CRV tokens at the prevailing market rate of $0.40. This value is expected to be created through various over-the-counter transactions involving Egorov and other members of the crypto community. With insights from The Block, Du confirmed through a direct message on X (formerly Twitter) that he has completed the purchase and has decided to store the tokens as veCRV. This might provide him with voting rights on the platform, Cointelegraph added.
It is expected that Egorov had withdrawn about $100 million stablecoin loan using his personal CRV stash as collateral. However, the protocol is believed to have been exploited on July 30, 2023, which eventually resulted in a 30% crash in CRV prices.
Supposedly, Egorov managed to repay over $17 million in stablecoin loans. However, he still faces a significant debt burden, Cointelegraph concluded.
(With insights from Cointelegraph)