NEAR Foundation: Wintermute wanted to use the USN it purchased from Alameda to arbitrage, so it rejected its redemption request

2023-11-08 11:45:45BlockBeatsShare to:

NEAR-7% ($1.436)

According to BlockBeats news, on November 8, Illia Polosukhin, the new CEO of the NEAR Foundation and co-founder of Near Protocol, responded to rumors that "Wintermute accused the NEAR Foundation of refusing to fulfill the 11.2 million USN redemption commitment involving FTX", saying that in 2022, USN Following the undercollateralization in late October, the USN Protection Program (USNPP), operated by Aurora Borealis Ltd. (ABL), was established to protect affected individuals. In August 2023, nearly a year after the launch of USNPP, Wintermute acquired 11.2 million USN from the Alameda estate (bankruptcy consortium) and requested to exchange them for USDT. Wintermute's redemption request is inconsistent with protecting affected individuals in the NEAR ecosystem. Wintermute's purchase of USNs from Alameda also raises significant KYC/AML concerns, as the USNs are of questionable origin, may be associated with illegal activity, and/or may be subject to future litigation or court orders. ABL exercised its discretion under the USNPP Terms of Use and rejected Wintermute's redemption request. Polosukhin said Wintermute was trying to use USNPP for last-minute arbitrage to profit from the USN spread offered by the Alameda estate. The goal of the USNPP is to ensure that individuals who actively participate in the NEAR ecosystem are fully compensated and remain engaged. As a sophisticated market maker and investor, Wintermute's desire to end arbitrage by purchasing distressed assets was inconsistent with the purposes of the USNPP, and therefore ABL rejected Wintermute's request.

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