Friday, September 30

Afraid of trouble, Tron CEO withdraws billions from the DeFi Aave platform


Justin Sun, CEO of Tron, withdrew 23 billion reais in cryptocurrencies from the DeFi Aave platform this past Saturday (30). The motivation may be linked to the recent loss of R$720 million from another DeFi protocol, Cream Finance, which occurred last Wednesday (27).

This sector has been gaining the attention of attackers for several reasons, among them the increased security in centralized exchanges that protect your funds using cold wallets (offline), as well as the large amounts involved in the DeFi sector.

Justin Sun, who was often seen advertising and messing with investors’ heads, has been quieter since the 2019 rumors when he traveled to China and rumors surfaced that he would be banned from leaving the country.

defi is the focus

Due to the increasing adoption of decentralized trading solutions, the amount of money in these protocols has been attracting the attention of hackers. According to AtlasVPN data, an equivalent of more than 6 billion was already stolen in the third quarter, with the majority being from DeFi projects.

Money stolen by hackers in the third quarter of 2021. Source: AtlasVPN

The last hack is not on this account, the one from Cream Finance. A sum equivalent to 720 million reais was stolen from their liquidity pools. The team revealed this Sunday (31) that it will cover the losses of users, starting partially.

Red flag

Three days after the Cream Finance hack, Justin Sun decided to withdraw all his money from Aave, another DeFi protocol. The sum of 23 billion reais includes almost R$ 12 billion in ETH, around 6.8 billion in USDC, as well as currencies such as BTC and other stablecoins.

The main motivation for this withdrawal may be the fear that Aave contains a point of failure similar to Cream Finance’s, allowing funds to be stolen.

According to journalist Colin Wu, Justin Sun’s transfer of these billions occurred after an implementation proposal was made by the Aave community, indicating that there really is a point of failure.

out of the spotlight

During a period between 2018 and 2019, Justin Sun was frequently seen in the media for his statements, many of them stirring up speculators and moving currency prices.

However, after a trip to China and rumors that he had been banned from leaving the country, his voice was not heard so often. The fact was linked to Tron’s ICO, allegedly done illegally.

The combination of facts leads us to believe that Justin Sun was warned by the Chinese authorities in some way. As for DeFi platforms, these follow in a game of cat and mouse with hackers where the winner is who finds the fault first.





livecoins.com.br