Thursday, April 25, 2024

Aave bought a 2.7M CRV to pay off bad debts after the failed Eisenberg attack


According to a new post on January 28. 26, Mark Zeller, lead integrator of decentralized lending (DeFi) protocol Aave, states that the company has purchased 2.7 million Curve (CRV) tokens, which should clear “excess remaining bad debt” over the next 15-plus hours ten treatment. The move follows community approval of the Aave Improvement Protocol (AIP) 144, which was published A swap holding 2.7 million units of CRV, with a USD Coin (USDC) spending limit of $3,15,000 and a maximum unit value of $1.15 per CRV.

The bad debt on the Aave protocol resulted from a complex exploit that occurred on November 3rd. 23. Avaraham Eisenberg, who previously depleted DeFi Mango Markets protocol and caused $47 million in net losses, took a series of short sized CRV positions on Aave in an effort to orchestrate a short squeeze and force developers to buy back his positions at above 100% slippage due to a shortage Liquidity.

However, it turned out that Aave had far more liquidity than expected, and Eisenberg reportedly lost $10 million in the trade. However, some slippage occurred as a result of the accident, and Aave was left with a total of 2.656 million CRV in bad debt while the Eisenberg centers were liquidated.

On the same day, Mango Markets filed a lawsuit against Eisenberg, asking the court to void the $47 million bounty agreement with the hacker for his role in the $117 million exploit in October. 12, 2022. The US Securities and Exchange Commission has charged Eisenberg with stealing $117 million in digital assets. Eisenberg was arrested in Puerto Rico by the FBI on December 3. 27, 2022, for commodity tampering and commodity fraud.

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Avraham Eisenberg (right) during an interview. Source: YouTube, “Unchained” podcast