Midas close down amid DeFi portfolio deficit

Due to a $63.3 million deficit in its decentralised finance (DeFi) portfolio, custody-based CeDeFi investment platform Midas will cease operations, as reported by Cointelegraph.

According to Cointelegraph, Iakov Levin, also known as “Trevor,” the company’s founder and CEO, stated in an announcement that the decision was made in part due to the fund’s DeFi portfolio losing $50 million, or 20% of its $250 million in assets under management (AUM).

Levin also emphasised how their struggles were exacerbated by the failure of the Terra, FTX exchange, and Celsius. Following the LUNA, Celsius, and FTX disasters, 60% of the funds were withdrawn by users, according to the founder of Midas. Levin penned, “We experienced an outflow of assets of more than 60% over the course of six months due to events involving LUNA, Celsius, and FTX. This made it impossible for us to sustain our fixed yield model.”

DeFi platform Defrost Finance recently revealed how it intends to reimburse users, and in the meantime, it has finally spoken out in response to claims that it pulled a “rug pull” following the recent $12 million exploit on its platform. According to the Defrost team, a compromised key does not equal a rug pull.

According to Cointelegraph, Avraham Eisenberg was recently detained and charged, according to other DeFi news. The Federal Bureau of Investigation charged Eisenberg with commodities fraud and commodities manipulation as a result of the Mango Markets exploit in a complaint that was made public on December 27.

(With insights from Cointelegraph)

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