TechFlow news: After the price of Curve's token CRV dropped 20% this week, questions have emerged over founder Michael Egorov’s previous move to rescue his loan positions through a series of large over-the-counter (OTC) transactions.
On July 31, Curve suffered an attack resulting in $70 million losses, causing CRV’s price to plummet from $0.73 to $0.50. Although most funds were recovered or intercepted by white-hat hackers, the CRV/ETH pool was drained. This pool is a key source of on-chain liquidity for CRV; insufficient liquidity could lead to bad debt when the platform attempts to liquidate undercollateralized positions backed by CRV.
At that time, Egorov held more than $110 million in stablecoin loans across various lending platforms, mostly collateralized with CRV. As CRV’s price declined, many of these positions faced liquidation risks.
To save his loans and prevent potential cascading liquidations, Egorov conducted a series of OTC deals with over ten institutions, selling large amounts of CRV at a discount to repay debts.
It is speculated that CRV was traded at around $0.4, roughly below market price at the time, with a six-month lock-up commitment—though reportedly not legally binding. Egorov confirmed to media that there are no penalties if buyers breach the lock-up agreement, but he expressed trust that they would honor their word.
Observers have noted that some buyers have already transferred tokens to exchanges, seemingly preparing for sales. DFW Labs, one of the buyers, had its head deny the allegations on Twitter, stating the transfers were for "trading needs."
Despite the price drop, Egorov’s current positions remain relatively safe. Data shows that on Aave, he has borrowed $14.8 million against $55.8 million worth of CRV collateral; across multiple platforms, he holds $27 million in loans backed by $68 million in CRV.
CRV is currently trading around $0.45, down 6% from the previous day.
