Coinfeeds Daily → Wintermute Accuses NEAR Foundation and Aurora of Breach of Contract

Wintermute Accuses NEAR Foundation and Aurora of Breach of Contract

Published: Nov 08, 2023 | Last Updated: Mar 17, 2024
Howard Kane

Prominent liquidity provider Wintermute alleges that NEAR Foundation and Aurora failed to honor an agreement, sparking controversy and potential legal action

Wintermute, a prominent liquidity provider, has accused the NEAR Foundation and Aurora of reneging on a deal to convert $11 million worth of USN stablecoins. This accusation has sparked controversy in the crypto community and could potentially lead to legal action.

Wintermute's Allegations

According to Evgeny Gaevoy, Wintermute's founder and CEO, the company had executed a transaction to sell $11.2 million worth of USN to FTX creditors. This transaction was based on an agreement with the NEAR Foundation and Aurora, who allegedly promised to convert the USN to USDT on a one-to-one basis.

However, Gaevoy claims that NEAR and Aurora refused to honor this agreement. As a result, Wintermute has not received any USDT, despite waiting for over two and a half months.

Potential Legal Action

In response to this alleged breach of contract, Wintermute has announced its intention to pursue legal action against both the NEAR Foundation and Aurora. Gaevoy has stated that the company will not let this issue slide and is prepared to take the necessary steps to ensure that the agreement is honored.

Implications for the Crypto Community

This controversy highlights the potential risks and challenges associated with stablecoin transactions. It underscores the importance of clear, enforceable agreements in the crypto space, particularly when large sums of money are involved.

As this situation unfolds, it will be crucial for other crypto entities to monitor the outcome and learn from the events. The final resolution could set a precedent for how disputes over stablecoin transactions are handled in the future.

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