According to a report by Blockworks, Michael Egorov, the founder of Curve Finance, engaged in a series of over-the-counter (OTC) transactions with more than a dozen counterparties to salvage his loans and potentially prevent a cascade of liquidations in the entire DeFi sector. In these transactions, he sold a significant amount of CRV tokens in exchange for stablecoins to repay his debts. While the exact terms of the transactions were not formally disclosed, several individuals who claim to have interacted with Egorov publicly stated that the tokens were sold at a price of $0.40 per CRV (far below the prevailing market price) with a lockup period of 6 months. However, the lockup appears to not be enforced through legal or smart contract mechanisms. Egorov confirmed in a statement that buyers violating the cooperation agreement would not face negative consequences, but he “believes they will” honor the commitment regarding the 6-month lockup.
Observers noted that some participants have moved their tokens to centralized exchanges, often signaling an intention to sell. Additionally, some project communities have indirectly committed to the 6-month lockup through voting. Earlier news revealed that DWF Lab purchased 12.5 million CRV from Egorov for 5 million USDT on August 1st, but transferred 2 million CRV to Binance on August 19th. The head of DWF Lab stated yesterday that the transfer to Binance was made for trading purposes.