Crypto Market Maker Wintermute Pays Off $96M TrueFi Debt Weeks After Being Hacked

The TrueFi loan was one of the firm's largest outstanding known debts owed to a DeFi lending platform.

AccessTimeIconOct 14, 2022 at 8:45 p.m. UTC
Updated Oct 14, 2022 at 9:22 p.m. UTC

Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.

Prominent crypto market maker Wintermute paid off its $96 million debt on decentralized finance (DeFi) protocol TrueFi, TrueFi’s loan dashboard shows, just about three weeks after being hacked for $160 million.

The TrueFi loan was one of the firm's largest outstanding known debts owed to a DeFi lending platform. Wintermute took out a $92 million loan on the TrueFi protocol from its USDT lending pool in April, which was due to mature Oct. 15.

Wintermute repaid the loan with interest Friday, one day before the deadline, transaction data on blockchain data platform Nansen shows.

CoinDesk - Unknown

TrueFi's loan dashboard showing Wintermute's loan history (Screenshot)

The loan was uncollateralized, meaning that the borrower didn’t pledge any assets against the loan, securing it only by its financial standing and reputation. Market makers and trading firms often take out these types of loans for trading purposes.

The news comes after Wintermute's DeFi operation suffered a $160 million hack in late September, one of the largest hacks in recent months. At the time, Wintermute’s outstanding DeFi debt amounted to $200 million, CoinDesk reported earlier. Evgeny Gaevoy, the firm’s CEO, said then the company remained solvent after the hack.

Earlier this week, Blockwater, a Korean trading firm, defaulted on a loan on TrueFi after missing payment on a $3.4 million loan. TrueFi said that it determined “a potential court-supervised administrative proceeding would lead to a better outcome” to recover the assets to lenders.


Read more about

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.

CoinDesk - Unknown

Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.