NEAR shares fall 6% as Near Foundation and Aurora find themselves embroiled in breach of trust scandal

Near Foundation (NF) and Aurora face accusations of refusing to honor a promise to redeem $11 million worth of USN stablecoin. This statement was issued by Wintermute founder and CEO Evgeny Gaevoy.

Gaevoy confirmed that NF initially agreed to facilitate the sale of $11.2 million worth of USN stablecoins to FTX Properties. However, NF later allegedly refused to fulfill this promise. Gaevoy’s public statement clarified the situation, expressing disappointment and frustration with NF and Aurora’s actions.

3. Summary

To reiterate, I see this situation very clearly:

– NF is committed to supporting USN and earmarking funds for it
– Aurora accepted redemption in August (it didn’t get it back until last week)
– NF decided they had the right to keep the $11 million to themselves instead of…

—Wishful Cynic (@EvgenyGaevoy) November 7, 2023

Gavoy’s summary of the situation highlighted the following points:

The nation’s navy has pledged to support the U.S. Navy and allocate funds to do so.
Aurora accepted the switch request in August but recently changed its mind.
NF appears to have unilaterally decided to keep the $11 million for itself rather than honor its public and private commitments.

The Wintermute CEO noted that the refusal to convert their USN stablecoin to USDT as originally promised caused direct harm to Wintermute. He expressed concern about the lack of transparency and accountability between Aurora and NF in the management of the project.

Gaevoy emphasized that Wintermute relies on Aurora and NF’s public and private information to establish their USN status. After successful trials and a two-month wait, they sought to convert their U.S. Navy. However, NF allegedly refused to fulfill its obligations without providing a reasonable explanation, leaving Gaevoy to speculate on the reasons behind this decision.

Gavoy suggests incompetence as an explanation, but things don’t seem that simple. In response to the alleged breach of contract, Gaevoy stated that Wintermute will take all legal avenues against the NEAR Foundation and Aurora, and made it clear that they have the means and choice to do so.

He also extended an invitation to other parties who may have similar issues with NF or have difficulty converting the USN stablecoin. Gaevoy’s public call for action shows Wintermute isn’t the only one unhappy.

To complicate matters further, Gaevoy clarified that Wintermute has no connection to NEAR. Therefore, the issue is not one of financial conflict of interest, but that they believe NF and Aurora’s decision is unfair.

Wintermute’s statement that the NEAR Foundation and Aurora have allegedly abandoned their commitment to transitioning the USN stablecoin is a major development in the crypto world. As legal proceedings and investigations unfold, the cryptocurrency community will be watching closely to see how this situation develops and whether it sets a precedent for accountability and transparency in the industry.

Following the charges, NEAR prices fell nearly 6% on the day and are currently trading at $1.40.