On November 11, Alameda Research filed a lawsuit against Sasha Ivanov, founder of the Waves blockchain, in a bid to recover $90 million. The suit claims Ivanov misused funds on the Waves-based Vires.Finance platform and manipulated the price of the WAVES token, leading to substantial financial losses.
Background of the Alameda Lawsuit and Allegations Against Ivanov
According to court documents, Alameda deposited $80 million in USDT and USDC on the Vires.Finance platform in March 2022, which was later converted into USDN, an algorithmic stablecoin by Neutrino Protocol. However, USDN faced multiple de-pegging events, ultimately rebranding to Neutrino USD (XTN), which has since lost 98% of its value.
The lawsuit accuses Ivanov of inflating WAVES token prices and redirecting funds from Vires.Finance under the guise of offering a secure lending platform. His actions allegedly led to a 95% drop in WAVES’ value, while Ivanov reportedly dissolved Vires.Finance and other entities to obstruct Alameda’s recovery attempts. Although Ivanov initially pledged to return the assets, he later ceased cooperation, escalating the financial impact on Alameda.
FTX’s Broader Legal Campaign and Market Reaction
The lawsuit against Ivanov is part of Alameda Research’s larger campaign to reclaim funds lost during FTX’s historic collapse in November 2022. As one of the most significant events in crypto history, FTX’s bankruptcy left investors with losses exceeding $8.9 billion. Alameda has initiated over 20 lawsuits, including a recent case to recover $11 million from a Crypto.com account.
Since the lawsuit’s announcement, WAVES tokens have seen a slight 1.51% price increase, trading at $1.16, although liquidity and market visibility remain low after Binance’s delisting of WAVES in June.
In light of these events, prominent figures like Moe Vela, former advisor to U.S. President Joe Biden, are calling for enhanced financial education within the crypto industry to prevent similar crises.
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