{"id":29819,"date":"2020-10-08T18:13:41","date_gmt":"2020-10-08T15:13:41","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=29819"},"modified":"2025-08-27T19:06:53","modified_gmt":"2025-08-27T16:06:53","slug":"media-ftx-founder-behind-yearn-finance-token-crash","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/media-ftx-founder-behind-yearn-finance-token-crash\/","title":{"rendered":"Media: FTX founder behind yEarn.Finance token crash"},"content":{"rendered":"<p>The drop in the price of the yEarn.Finance token (YFI) on Thursday to $12,400 \u2014 the lowest since late August \u2014 could have been sparked by FTX founder and Alameda\u2019s Sam Bankman-Fried. Such speculation arose on the Chinese social network Weibo, according to <a href=\"https:\/\/www.newsbtc.com\/news\/yearnfinance\/ftx-ceo-is-behind-yfi-prices-crash-towards-12k-claims-weibo-profile\/\" target=\"_blank\" rel=\"noopener noreferrer\">NewsBTC<\/a>.<\/p>\n<p>A user of the microblogging service @Crypto Apprentice posted a series of screenshots that, he says, support this hypothesis.<\/p>\n<p>According to posts on Weibo, Bankman-Fried initially placed native tokens of the exchange FTX (FTT) and the decentralised trading platform Serum (SRM) into the liquidity pool of the crypto lending DeFi protocol Cream.<\/p>\n<p>Presumably they were used as collateral to attract assets into three DeFi tokens \u2014 Uniswap (UNI), Curve (CRV) and yEarn.Finance (YFI).<\/p>\n<p>Julien Thevenard, who represents Fabric Ventures, said the wallet held $72 million in FTT tokens, suggesting the plausibility of these suspicions.<\/p>\n<blockquote>\n<p>&#8220;Yesterday they borrowed 2.7M UNI and 165 YFI and sent them to Binance. Since then they have repaid 1.3M UNI. Interestingly, they hold 14M SushiSwap (SUSHI) there,&#8221; he wrote.<\/p>\n<\/blockquote>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">If you want to look for yourself, this wallet might be Alameda\u2019s because it has $72M in FTT.<\/p>\n<p>They have borrowed 2.7M UNI + 165 YFI (+ no CRV) yesterday and sent them to Binance. They have repaid 1.3M UNI since.<\/p>\n<p>Interestingly they hold 14M Sushi there!<a href=\"https:\/\/t.co\/Lo8CAMmV21\">https:\/\/t.co\/Lo8CAMmV21<\/a> <a href=\"https:\/\/t.co\/MyRbAfQhjD\">https:\/\/t.co\/MyRbAfQhjD<\/a><\/p>\n<p>\u2014 Julien Thevenard (@JulienThevenard) <a href=\"https:\/\/twitter.com\/JulienThevenard\/status\/1313886997669392386?ref_src=twsrc%5Etfw\">October 7, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>@Crypto Apprentice also posted a screenshot of a chat with an unknown user allegedly with Bankman-Fried. In the fragment shown, the first asks the second whether he would short UNI and YFI, to which the response is &#8220;possibly&#8221; and a smiley.<\/p>\n<div id=\"attachment_112601\" style=\"width: 634px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-112601\" class=\"wp-image-112601 size-full\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/Clipboard-October-8-2020-5_22-PM.png\" alt=\"Media: FTX founder behind yEarn.Finance token crash\" width=\"624\" height=\"494\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/Clipboard-October-8-2020-5_22-PM.png 624w, https:\/\/u1f987.com\/wp-content\/uploads\/Clipboard-October-8-2020-5_22-PM-300x238.png 300w\" sizes=\"auto, (max-width: 624px) 100vw, 624px\" \/><\/p>\n<p id=\"caption-attachment-112601\" class=\"wp-caption-text\">Screenshot of the purported dialogue with the head of FTX, in which he entertains the possibility of shorting UNI and YFI. Source: Weibo.<\/p>\n<\/div>\n<p>None of the screenshots include specific dates for the events.<\/p>\n<p>According to CoinGecko, at the time of writing YFI had pared its daily decline to 0.6%. It is now valued at $15,211, having traded as low as $12,409 intraday. The all-time high, set on September 13, stands at $43,337. On August 18, YFI <a href=\"https:\/\/u1f987.com\/en\/news\/yearn-finance-price-surges-on-binance-briefly-ahead-of-bitcoin\">became<\/a> more expensive than Bitcoin.<\/p>\n<p>Earlier ForkLog <a href=\"https:\/\/u1f987.com\/en\/news\/defi-sector-loses-a-quarter-of-its-market-capitalisation-in-a-day\">reported<\/a> a 31.3% drop in YFI over the last seven days. Along with SUSHI and UNI, the coin has been one of the main underperformers in the DeFi sector\u2019s market-cap slump.<\/p>\n<p>Earlier this month, yEarn.Finance founder Andre Cronje began work on a new project, Eminence. Three weeks before its launch, a hacker <a href=\"https:\/\/u1f987.com\/en\/news\/hacker-siphons-15-million-from-unfinished-defi-project-eminence\">withdrew<\/a> $15 million, using the ecosystem deployed for testing.<\/p>\n<p>On October 7, the yEarn.Finance developers <a href=\"https:\/\/u1f987.com\/en\/news\/yearn-finance-readies-storage-upgrade-as-liquidity-declines\">announced<\/a> an update to the yVaults storage, aimed at increasing its flexibility and security.<\/p>\n<p>Subscribe to ForkLog&#8217;s channel on <a href=\"https:\/\/www.youtube.com\/channel\/UCC9FnXTC8_ENzaNSO5cHQ6g\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"> YouTube<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The drop in YFI&#8217;s price to $12,400\u2014the lowest since late August\u2014could have been sparked by Sam Bankman-Fried, founder of FTX and Alameda, according to NewsBTC.<\/p>\n","protected":false},"author":1,"featured_media":29820,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1093,1138,1869],"class_list":["post-29819","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-defi","tag-opinions","tag-yearn-finance"],"aioseo_notices":[],"amp_enabled":true,"views":"15","promo_type":"1","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/29819","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=29819"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/29819\/revisions"}],"predecessor-version":[{"id":29821,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/29819\/revisions\/29821"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/29820"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=29819"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=29819"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=29819"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}