Coinbase director Conor Grogan has brought up a crashing Bitcoin exchange with funds from thousands of crypto investors. Allegedly, the exchange still holds $42 million in client funds.
New details from the Bitcoin exchange that imprisoned $ 42 million of customer funds
Coinbase director Grogan updated on the decentralized exchange “Etherdelta”, which has been gradually withdrawn from the market and where many people are trapped in funds. The DEX platform was one of the first exchanges launched in 2016, and was shut down due to sanctions by the US regulator SEC against its founders.
But Etherdelta’s smart contracts still work, according to Grogan. Interestingly, Etherdelta still has $42 million in funding, and Grogan says most of them could belong to users.
Etherdelta, one of the first "DEXs," was launched way back in 2016. The front-end was shuttered in 2018 after the SEC cracked down on the founders, but the smart contracts still operate.
Today they still hold $42M in assets, most of which I think people simply forgot about pic.twitter.com/snmMzmuRFv
— Conor (@jconorgrogan) February 4, 2023
Etherdelta holds these coins, they can still trade
Grogan shared a list of wallet addresses with at least 0.1 Ethereum in the smart contract, noting that funds can be withdrawn via contracts. In 2018, the SEC filed charges against EtherDelta founder Zachary Coburn. The lawsuit represented the regulator’s first enforcement action against an unregistered digital asset manager. The SEC claimed that EtherDelta did not receive regulatory clearance before allowing customers to place more than 3.6 million ERC20 tokens.
On the other hand, Everlend Finance, a Solana-based DeFi lending protocol, has asked its customers to withdraw their funds as it shut down its app platform. The project noted that it has enough resources to survive. However, it has decided to stop its trading as moving forward with its current situation would be tantamount to gambling.
We are deeply saddened to announce that as of today our team has decided to close down https://t.co/UiTuuSdyrB and won’t continue its development
— Everlend (@EverlendFinance) February 1, 2023
Everlend Finance reported its bankruptcy on Twitter on February 1, saying, “We are deeply saddened to announce that our team has decided to close the project as of today and will not continue development.” Further explanations are as follows:
It was a very difficult decision to make, it took us a month to try and explore any option to move forward. The team still thinks that Everlend is an excellent product that will one day come in handy, and Solana is the most efficient Blockchain to implement it. Unfortunately, liquidity is not available and it is not just about Solana and the bill of lading market (which Everlend is 100% dependent on) continues to shrink.
Everlend Finance, TVL tops $400,000
According to DeFiLlama, Everlend at the peak of its operations controlled approximately $400,000 in locked total value (TVL). That figure dropped significantly in November amid FTX’s collapse as funds left the protocols in the Solana ecosystem. It is estimated that $1 billion of client funds are squeezed in FTX, versus $42 million in Etherdelta. As we quoted as Kriptokoin.com, the lawyers of former CEO SBF wanted some of this money back.
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