Platforms Waves and Vires Finance defrauded users of an astonishing $500 million through manipulative schemes and deceptive actions, leading to extensive financial losses. Waves founder Sasha Ivanov utilized the stablecoin $USDN to artificially inflate the value of $WAVES, causing a market collapse and significant financial losses for users.

Market Manipulation: Assumption of User Debts and Losses for Alameda Research

Sasha Ivanov’s latest move involved taking over user debts, which further expanded the scandal. Even major investment firm Alameda Research suffered a $90 million loss, intensifying the seriousness of the situation.

Vires Finance and a Series of Rug Pulls

Operating since 2021 as a prominent lending platform on Waves, Vires Finance attracted investors with its yield farming opportunities and reached a peak of nearly $2 billion in capital. However, behind the scenes, Sasha was using the algorithmic stablecoin $USDN to manipulate the value of $WAVES.

This tactic involved taking loans in USDT/USDC, using $USDN as collateral, and artificially raising the price of $WAVES. Once investors noticed the manipulation, the price of $WAVES plummeted by 93%, resulting in a total loss of $500 million. Users desperately tried to recover their investments, but this was only the beginning of a series of fraudulent actions.

Further Manipulation and Withdrawal Restrictions

In another fraudulent step, Sasha proposed a management plan intended to liquidate short positions on $WAVES, forcing users to make additional deposits to avoid liquidation. Although the proposal was ultimately blocked, the damage was already done. Sasha continued to control liquidity, and the Ponzi-like scheme persisted.

Stablecoin Manipulations and Withdrawal Freezes

Even after this scandal, Sasha Ivanov did not relent. He devised further tactics, including the forced conversion of USDT/USDC to the unstable $USDN. Shortly thereafter, $USDN lost its peg, negatively impacting users who wanted to withdraw their funds. Sasha even introduced new markets that were vulnerable and dependent on his manipulations from the outset. Promises of liquidity and stability proved deceptive, leaving users with practically worthless assets.

"The Grand Finale": Assumption of Outstanding Debts and Additional Losses

In the final act of fraud, labeled “The Grand Finale,” Sasha Ivanov took on outstanding debts and seized valuable assets from users. This move also impacted Alameda Research, which lost $90 million, linking Sasha to further major controversies within the crypto world.

#Cryptoscam , #cybersecurity , #cryptofraud ,#CryptoNewss , #hackers



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