Aave purchases 2.7M CRV to clear unhealthy debt following failed Eisenberg assault

In keeping with a brand new submit on Jan. 26, Marc Zeller, integrations lead at decentralized finance (DeFi) lending protocol Aave, acknowledged that the agency bought 2.7 million Curve (CRV) tokens, which might clear “extreme remaining unhealthy debt” inside the subsequent 15 hours over a dozen transactions. The transfer follows the neighborhood approval of Aave Enchancment Protocol (AIP) 144, which deployed a swap contract that acquires 2.7 million models of CRV, with a USD Coin (USDC) spend restrict of $3,105,000 and a most unit worth of $1.15 per CRV.

The unhealthy debt on the Aave protocol resulted from a refined exploit that befell on Nov. 23. Avaraham Eisenberg, who beforehand drained DeFi protocol Mango Markets and precipitated $47 million in web damages, took on a sequence of heavy quantity brief CRV positions on Aave in an try and orchestrate a brief squeeze and pressure builders to buyback his positions at upward of 100% slippage as a result of lack of liquidity.

Nevertheless, it turned out Aave had far more liquidity than anticipated, and Eisenberg reportedly misplaced $10 million on the commerce. Nonetheless, some slippage occurred on account of the incident, and Aave was left with a complete of two.656 million CRV in unhealthy debt whereas liquidating Eisenberg’s positions. 

The identical day, Mango Markets filed a lawsuit in opposition to Eisenberg, asking the courtroom to rescind its $47-million bounty settlement with the hacker for his position within the $117-million exploit on Oct. 12, 2022. The US Securities and Change Fee has charged Eisenberg with stealing $117 million in digital property. Eisenberg was arrested in Puerto Rico by the Federal Bureau of Investigation on Dec. 27, 2022, on fees of commodities manipulation and commodities fraud. 

Avraham Eisenberg (proper) throughout an interview. Supply: YouYube, “Unchained” podcast