News

NEAR Foundation Rejects $11.2M USN Redemption, Sparks Crypto Controversy

Key Points:

  • NEAR Foundation’s refusal to honor 11.2M USN redemption commitment sparks crypto dispute.
  • Wintermute’s efforts yield over $11M for FTX creditors, but NEAR’s refusal causes setback.
NEAR Foundation has sparked controversy by declining to honor an 11.2 million USN redemption commitment tied to FTX.

Wintermute, which had been working closely with the FTX bankruptcy estate since earlier this year, revealed that it had facilitated the liquidation of assets, generating over $11 million for FTX creditors. The transaction was executed with the understanding that USN could be redeemed for USDT at a 1-to-1 ratio. Wintermute’s confidence in this exchange was bolstered by public statements from the NEAR Foundation, as well as assurance from Aurora in private conversations, confirming the feasibility of the redemption process within a few days.

Wintermute’s Efforts and NEAR’s Refusal: The Crypto Standoff Unraveled

Wintermute’s efforts and submission of the redemption, the NEAR Foundation refused to honor its commitments, leaving Wintermute without the anticipated USDT for the USN transferred in August. After a prolonged wait of 2.5 months, the final offer presented by the NEAR Foundation amounted to a mere 20% of the sum in question, leaving Wintermute disheartened.

Wintermute attempted to propose an alternative solution that would contribute value to the NEAR ecosystem. This proposal involved Wintermute accepting a major portion of the owed sum as an investment in locked $NEAR tokens and a commitment to integrate into the ecosystem. However, the NEAR Foundation has not shown a willingness to explore these potential solutions.

The incident has raised concerns within the crypto community, highlighting the challenges and complexities associated with redemption commitments and the implications for investor trust and market stability. As the situation unfolds, stakeholders are monitoring the evolving dynamics between the parties involved and the potential impact on the broader digital asset landscape.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

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