Curve Finance Founder Egorov Liquidated After CRV Token Crashes 40%

A sudden and dramatic crash in the value of Curve Finance's native token, CRV, has resulted in substantial losses for bullish investors and the platform's founder, Michael Egorov.

Blockchain analysis platform Arkham has reported that Curve Finance founder Michael Egorov faced liquidations totaling $140 million in CRV after the platform’s native token experienced a sudden and dramatic crash.

According to a social media post by Arkham on X (formerly Twitter), Egorov's lending position, valued at nine figures, was liquidated across five protocols due to CRV's price dropping below his liquidation threshold.

“Curve founder Michael Egorov just got liquidated. His lending position (9 figures) was spread across 5 protocols. CRV price dropped massively, and now his liquidation price is lower than the floor. Happens when you overleverage,” the post stated.

Egorov later confirmed the liquidations, revealing that he had bad debt of over a million dollars on Curve’s Llamalend, which was cleared after receiving $6 million USDT. He also experienced a $5 million liquidation on UwU Lend and made repayments on Inverse to prevent further losses.

On June 13, Curve contributor Saint Rat reported that the protocol had incurred $11.5 million in bad debt, which could be resolved if the price of CRV rises to $0.33. Egorov expressed his commitment to working with the Curve Finance team to address the bad debt situation and protect users from its impact.

“We are working with the Curve Finance team to solve the liquidation risk issue which happened today. Many of you are aware that I had all my loans liquidated. Size of my positions was too large for markets to handle and caused 10M of bad debt. Only CRV market on lend.curve.fi (where the position was the biggest) was affected. I have already repaid 93%, and I intend to repay the rest very shortly. It will help users not to suffer from this situation,” Egorov stated.

In response to the crisis, Egorov proposed burning 10% of the total CRV supply to stabilize the token’s price. He also announced that active voters would receive a three-month boost on deposit rewards across all Curve platforms, aiming to incentivize participation and strengthen the ecosystem.

“I proposed to burn 10% of CRV tokens and give 3 months of active voter boost on deposit rewards across the board on Curve. We will also be adding CRV rewards to lending. We intend to make CRV a stablecoin,” Egorov added.

Interestingly, this recent episode is not the first time Egorov has faced significant liquidations. Last year, he borrowed $60 million in loans from Aave, posing a risk of bad debt if liquidated.

To address this, Gauntlet, a risk management firm, recommended freezing Aave’s v2 CRV market to minimize protocol risks. In a subsequent private deal, Egorov sold 106 million CRV for $46 million to repay most of his debts on Aave and other lending platforms, ultimately settling his debt to Aave with an $11 million USDT deposit in September.

Before the market crash, CRV was trading at $0.3582. However, it plummeted nearly 40%, hitting an all-time low of $0.2220.

Since then, the token has recovered and is currently trading at $0.2880. This recovery has helped to mitigate the losses incurred within the 24-hour timeframe, reducing them to 22%.

News source：https://www.kdj.com/cryptocurrencies-news/articles/curve-finance-founder-egorov-liquidated-crv-token-crashes.html

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