According to a new post on Jan. 26, Marc Zeller, head of integrations for the DeFi lending protocol. Aave, stated that the firm purchased 2.7 million Curve (CRV) tokens that would clear “excessive remaining bad debt” in the next 15 hours through a dozen transactions. The move follows community approval of Aave Improvement Protocol (AIP) 144, which unfolded an exchange contract which acquires 2,700,000 CRV units, with a spending limit of 3,105.00 USDC and a maximum unit value of USD 1.15 per CRV token.
The bad debt in the Aave protocol was the result of a sophisticated exploit that took place on November 23. Avaraham Eisenberg, who previously hollowed out the DeFi protocol Mango Markets and caused $47 million in net damage, took a series of high-volume CRV shorts on Aave in an attempt to orchestrate a short stranglehold and force developers to buy back their positions with a deterioration greater than 100% due to lack of liquidity.
However, it turned out that Aave was much more liquid than anticipated, and Eisenberg reportedly lost $10 million on the deal. However, some landslides occurred as a result of the attack, and Aave was left with a total of 2,656 million CRV in bad debt by liquidating Eisenberg’s positions.
On the same day, Mango Markets filed a lawsuit against Avraham Eisenberg, asking the court to terminate its $47 million reward agreement with the hacker for his role in the $117 million October 12, 2022 exploit. The United States Securities and Exchange Commission has charged Eisenberg with stealing $117 million in digital assets. Eisenberg was arrested in Puerto Rico by the FBI on December 27, 2022 on charges of manipulation and fraud of raw materials.
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