- Alameda sues Sasha Ivanov, seeking to recover $90 million in crypto assets tied to Vires Finance.
- Ivanov is accused of manipulating WAVES token value while secretly pulling funds from Vires.Finance.
- Alameda claims Ivanov ignored multiple attempts to resolve the issue and now faces legal action.
Alameda Research, a hedge fund linked to the failing crypto exchange FTX, has filed a complaint against Sasha Ivanov, founder of the Waves blockchain. The lawsuit claims Ivanov manipulated assets related to Vires Finance, a private exchange built on Waves. The company is now seeking to get back $90 million from its participation in the system.
Charges of Fraud and Negligence
In March 2022, Alameda deposited $80 M in Tether into Vires Finance for its financial operations. The platform then converted these funds into USDN, a stablecoin linked to the Neutrino Protocol. However, the USDN lost its peg to the U.S. dollar several times and eventually rebranded as Neutrino USD, only to lose 98% of its value.
The lawsuit further claims that Ivanov manipulated the value of the WAVES token while siphoning funds from Vires Finance. Despite promoting the platform as an opportunity for major profits, he is accused of secretly inflating the token’s value to benefit himself. This allegedly misled investors about the platform’s true potential and stability.
Alameda’s Attempts to Recover Funds
According to the lawsuit, Alameda made several attempts to recover its funds but faced constant resistance from Ivanov. Alameda only met with Ivanov once in January 2023, and after that, Ivanov ignored all further attempts to resolve the issue. Alameda claims Ivanov’s refusal to engage led to the filing of the lawsuit, seeking legal action to recover the $90 million in assets.
Rising Concerns in the Crypto Industry
This action shines a spotlight on the risks associated with decentralized finance systems. The case raises concerns about the transparency and management of crypto platforms like Waves and Vires Finance. With increasing legal challenges in the DeFi sector, it calls into question the need for more regulation and oversight to protect shareholders in this volatile business.
The post Alameda Research Sues Waves Founder for $90 Million Crypto Loss appeared first on Crypto News Land.
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