Alameda Research, a subsidiary of insolvent crypto exchange FTX, sued Waves blockchain pioneer Sasha Ivanov for $90 million related to Vires.Finance.
FTX's sibling hedge fund Alameda Research sued Waves creator Sasha Ivanov to recover $90 million in crypto it placed with Vires.Finance, a Waves-based decentralized crypto exchange.
A Nov. 10 complaint claims Alameda Research traded and invested $80 million in Tether and USD Coin on Vires.Finance in March 2022. The platform turned the assets into $90 million in USDN, a Neutrino Protocol algorithmic stablecoin. USDN lost its peg to the U.S. dollar many times and was renamed as Neutrino USD (XTN), which has lost 98% of its worth.
Ivanov touted Vires as a way for lenders and other users to earn “substantial profits,” but he “secretly orchestrated a series of transactions that inflated artificially the value of WAVES, while at the same time siphoning funds from Vires,” according to the complaint
The complaint states that Ivanov publicly blamed Alameda for upsetting the Waves ecosystem to “divert attention from his involvement in the fraud.” WAVES prices plummeted 95% once the scam was discovered.
According to the petition, Ivanov promised to restore Alameda's assets to creditors but rejected every overtures and refused to comply. The paper indicates he dissolved Vires.Finance and Waves' legal entities.
FTX sued Alameda Research to collect almost $11 million from a Crypto.com account a few days earlier. Alameda launched the account under Ka Yu Tin (Nicole Tin) as part of a larger practice of employing shell firms and staff identities to covertly trade bitcoin, according to the complaint.
