Co-founder of DeFi project SushiSwap, which raised $1.5 billion in just a week and then mired in scandals, returned all the $14 million worth of ETH that he withdrew from the developer fund and sold last week. Chef Nomi apologized for his actions.
Chef Nomi, the anonymous co-founder of DeFi platform SushiSwap, announced that he returned to the developer fund all the $14 million worth of ETH he had withdrawn last week, sparking a scandal and a tenfold drop in the price of the SUSHI coin. According to Etherscan, Chef Nomi transferred 38,000 ETH back to the original developer fund wallet on September 11, 2020.
“I have returned all the $14M worth of ETH back to the treasury. And I will let the community decide how much I deserve as the original creator of SushiSwap. In any currency (ETH/SUSHI/etc). With any lockup schedule you wish,” he tweeted.
Later, he wrote another message:
“To everyone. I fucked up. And I am sorry.”
After this announcement, the price of SUSHI rose by 16% from $2.26 to $2.7.
At the end of August, the DeFi protocol SushiSwap, which is the fork of the Uniswap decentralized trading platform, accumulated $700 million in three days. A couple of days later, the protocol blocked assets worth $1.5 billion. But the joy of investors who expected multiple returns from their investments quickly changed to frustration and anger.
On 5 September, the project co-founder Chef Nomi sold half of the developer fund with assets worth $27 million in SUSHI tokens. He withdrew 20,039 ETH and 2,558,644 SUSHI worth $15 million. As a result of this sale, the price of the coin collapsed 10 times. Token rate fell to $1, but later adjusted to $3. The next day, Chef Nomi announced the transfer of control over the platform to FTX exchange CEO Sam Bankman-Fried.