Dispute Between Wintermute and Near Foundation Over Failed Stablecoin Conversion Deal

The cryptocurrency community is alarmed after Wintermute, a company specializing in cryptocurrency markets, announced its plans to file a lawsuit against Near Foundation. This legal action is related to the failure to execute an agreement regarding stablecoin conversion, which was reached between the parties in August. This event raises important questions about reliability and trust in the world of cryptocurrencies.

According to information shared on social media, Evgeny Gaevoy, the founder and CEO of Wintermute, has expressed his intentions to sue Near Foundation. This nonprofit organization is behind the Near protocol, which holds a significant reputation in the world of cryptocurrencies.

The agreement in question pertains to the conversion of stablecoins and was initially reached back in August. Wintermute had expected to exchange the USN stablecoin for USDT at a 1:1 ratio. Their confidence in the success of the deal was based on prior agreements in private chats and public statements about the redemption. This was a crucial aspect of Wintermute's plans, and they successfully executed a transaction associated with the FTX exchange, sending approximately 11 million dollars to the creditors of the bankrupt exchange.

However, two months after the successful transaction, Near Foundation refused to honor the stablecoin conversion agreement. This turn of events has led to significant disappointment and dissatisfaction among cryptocurrency market participants. This dispute has negative implications for all parties involved and raises essential questions about trust in the industry.

It is worth noting that this situation is connected to the collapse of the FTX cryptocurrency exchange in November 2022. The bankrupt company decided to liquidate its assets to maximize creditor payments. Wintermute has been involved in this process since March and was tasked with facilitating the sale of the USN stablecoin, which was initially conceived as an algorithmic stablecoin but later became fully backed by Tether (USDT) in a 1:1 ratio.

This scenario highlights how complex and unpredictable operations in the cryptocurrency sphere can be. The dispute between Wintermute and Near Foundation calls into question the reliability and long-term trust in cryptocurrency transactions. It also underscores the importance of regulation and transparency in the industry, enabling market participants to feel more secure and confident in their investments.