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Wintermute claims NEAR backed out of $11M stablecoin redemption deal

Wintermute claims NEAR backed out of $11M stablecoin redemption deal

The NEAR Foundation and Aurora allegedly failed to fulfill an agreement to convert $11 million worth of USN stablecoins, according to Wintermute founder and CEO Evgeny Gaevoy.

Gaevoy claimed in a Nov. 7 Twitter post that NEAR refused to uphold a commitment to facilitate the sale of $11.2 million worth of the stablecoin USN for the FTX estate.

Gaevoy stated that Wintermute had been collaborating with FTX to sell off its assets for creditors, including the $11.2 million worth of USN.

According to Gaevoy, Wintermute carried out the transaction — which generated $11 million for FTX creditors — based on an alleged agreement with the NEAR Foundation for the redemption of USN to Tether (USDT) on a one-to-one basis.

However, when Wintermute submitted the redemption request, NEAR allegedly “refused to honor their commitments.” Gaevoy claimed that after two and a half months, Wintermute had still not received any USDT.

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Gaevoy also claimed that Wintermute was offered a final settlement of 20% of the $11 million. He stated that Wintermute would pursue “all legal avenues” against NEAR and Aurora — the organization responsible for transferring assets from the Ethereum network to the NEAR protocol.

USN was initially launched as an algorithmic stablecoin on April 25, 2022 by Decentral Bank, a project that operated independently and did not receive direct financial assistance from the NEAR Foundation.

However, in October, the NEAR Foundation established a $40 million fund to support USN to USDT conversions after USN became undercollateralized.

Gaevoy mentioned that the post was the “last and public attempt” to request the NEAR Foundation to complete the redemption.

“However if [NEAR Foundation] continues to be unreasonable about this situation, we are fully committed to switching into a full-time adversarial mode.”

The NEAR Foundation and Aurora did not respond immediately to a request for comment.

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