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Wintermute and NEAR Foundation: A $11 Million Redemption Rift in the Crypto Community

In a revelation that's sending shockwaves through the crypto community, Wintermute alleges a deal gone cold with NEAR Foundation and Aurora Labs over an $11 million stablecoin redemption.

In the dynamically charged atmosphere of cryptocurrency exchanges, a significant tremor was felt as Wintermute, a prominent market making firm, publicized an escalating dispute with the NEAR Foundation and its affiliate, Aurora Labs. The contention pivots on a sizeable $11 million redemption deal that Wintermute asserts the NEAR Foundation has backed out of, sparking conversations about trust and commitment in the digital currency domain.

From Stablecoin Deals to Stalemates

The stage was set when Wintermute’s founder and CEO, Evgeny Gaevoy, voiced the firm’s position in a post on the platform X. Gaevoy claimed a stark breach of trust, alleging that the NEAR Foundation had reneged on a critical agreement involving the exchange of $11.2 million in USN stablecoins.

To backtrack a bit for those new to the scene, USN is the NEAR-based algorithmic stablecoin that had its ups and downs in the crypto market before shutting down last year. In the thick of it all, Wintermute stepped up to facilitate the liquidation of assets for FTX’s bankruptcy estate, intending to dish out creditor distributions. A chunk of this transaction was the said $11.2 million in USN, which, as per Gaevoy, was predicated on the assurance of redeeming USN to USDT on a one-to-one basis.

High Hopes and Higher Stakes

Hope hung high when, in October 2022, reports surfaced about the NEAR Foundation earmarking a whopping $40 million for a USN redemption program. The intent was to enable a smooth swap from USN to USDT, maintaining a parity that promised stability in a market that’s anything but.

Wintermute, relying on public statements and a personal introduction to Aurora, moved ahead with the deal. “However, upon submitting our redemption, NF [NEAR Foundation] refused to honor their commitments. 2.5 months later, we haven’t received any USDT for the USN sent to them in August,” Gaevoy disclosed, painting a picture of a deal gone south.

The Fallout: A Relationship on Thin Ice

The fallout has been as public as it is bitter. Gaevoy didn’t mince words, describing the relationship between Wintermute and the NEAR-Aurora duo as frosty at best. With Wintermute’s final offer dangling at a meager 20% of the original sum, Gaevoy’s narrative signals a shift to what he dubs “full-time adversarial mode,” should the NEAR Foundation continue to skirt around the issue.

A Silence that Speaks Volumes

At the time of writing, the silence from the NEAR Foundation and Aurora Labs is loud. Requests for comments have gone unanswered, leaving the crypto community to mull over one side of the story—a story that certainly highlights the volatile nature of crypto relations and agreements.

Ethereum Restaking: The Wider Implications

In a broader context, this incident mirrors a larger theme of trust and reliability that’s currently under the microscope in the crypto world. With Ethereum’s restaking debate simmering in the background, the industry is at a crossroads, weighing the innovation against the potential for creating a “dangerous house of cards.”

Where Do We Go from Here?

Wintermute’s disclosure is not just about a single transaction; it’s a cautionary tale for the crypto market at large. It underscores the importance of not only written agreements but also the weight of public statements and the expectation they set.

As the crypto community watches this space for further developments, one thing remains clear: in the volatile sea of cryptocurrency, trust is the anchor that can either hold firm or drag you under. Whether this situation resolves with a redemption or results in a legal showdown, it will set a precedent for how crypto entities navigate the murky waters of digital asset agreements.


Coin Choose is a dynamic crypto-journalist known for his sharp insights and lively writing style. With a background in investigative journalism and a knack for demystifying the complex world of cryptocurrencies, CC brings a fresh, engaging perspective to the crypto news landscape. His personal motto, "Decrypting crypto, one story at a time," perfectly encapsulates his approach: tackling the complexities of cryptocurrency with clarity, enthusiasm, and a hint of playful curiosity.

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