Custody investment platform CeDeFi Midas will shut down because of a $63.3 million deficit in its decentralized finance (DeFi) portfolio.
In the announcement, the corporate’s founder and CEO Iakov Levin aka “Trevor” he wrote that the move is partly since the fund’s DeFi portfolio has lost $50 million, representing 20% of its $250 million (AUM) assets under management.
In addition, Levin also emphasized that the collapse of the Terry, FTX and Celsius exchanges contributed to their struggles. The founding father of Midas noticed that their users withdrew 60% of their funds after the LUNA, Celsius and FTX mishaps. lewin wrote:
“We experienced an asset outflow of over 60% in six months because of events involving LUNA, Celsius and FTX. This has prevented us from maintaining our model of consistent profitability.”
According to the announcement, the corporate’s total liabilities in Bitcoin (BTC), Ether (ETH) and stablecoins are $115 million, while their current assets are value roughly $51.7 million. This adds as much as a complete deficit of $63.3 million.
The founder also noted that Midas plans to eventually offer CeDeFi strategies to CeFi and DeFi users by making a recent project in hopes of making a recent “win-win situation.” Levin said he would connect competing protocols through liquidity.
Associated with: Alameda wallets turn out to be lively days after bail by SBF, community reflects on foul play
Meanwhile, after recently revealing the way it plans to refund users, DeFi platform Defrost Finance has finally broken its silence over accusations of “pulling the carpet” following a recent $12 million exploit on its platform. The Defrost team told Cointelegraph that a compromised key just isn’t similar to pulling a carpet.
In other DeFi news, Abraham Eisenberg was recently arrested and charged. In a criticism made public on December 27, the Federal Bureau of Investigation accused Eisenberg of commodity fraud and commodity manipulation because of the Mango Markets exploit.