Thread by @WazzCrypto

This one is a spicy account of one of the biggest FRAUDS in crypto EVER, that rarely gets talked about in the media, while its authors roam free

How $WAVES , @viresfinance and @sasha35625 Rugged users NOT 1, NOT 2, but SEVEN TIMES on their SCAM Chain, a thread 👇

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Rug #1:

@viresfinance was launched in 2021 and quickly became the major $WAVES money market, attracted nearly $2B of capital at its height

Everyone was still coming off the crazy yield farming days and the yield offered was very attractive, looked like a decent opportunity

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What was going in the background was far more serious. It turns out that someone was behind the scenes borrowing all $USDT / $USDC on chain with $USDN collateral (their algo stable) , and consequently sending it to exchanges to buy $WAVES and pump the price

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Short time after people started noticing and it was a death spiral on $WAVES which meant a death spiral on $USDN

-93% in days, $500M of users money was lost, it's unclear how much was pocketed through this scheme

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For a rug of $500M, which is one of the biggest rugs ever, very few outlets reported this, even @0xHamz deleted his original thread, maybe cuz Sasha made threats all who pressed or questioned him

@DLNewsInfo where one of the few outlets to cover this story (1 year later)

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Rug #2:

Sasha plan turned even darker, he engineered a gov proposal that would liquidate everyone short $WAVES and $USDN on chain, by changing the liquidation threshold for these to 0,1%, basically liquidating everyone who had these assets borrowed



8/ https://t.co/ZvHmubhS3Jforum.vires.finance/t/set-waves-us…

Narrative was "bad VCs are shorting and hurting $WAVES"

Reality: Sasha was forcing everyone's hand to deposit more into the ponzi, or risk liquidating all their assets. People actually deposited more to pay their debts (including me who was shorting $WAVES)

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It was all sham governance on a DAO with a few days of existence on which the team controled all votes

Last minute the proposal didn't pass, but the rug was done, Sasha sucessfully got a liquidity injection, more money flew into the ponzi, and $WAVES had a short lived pump

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They also changed the voting requirements so they could get all the changes to the protocol as they pleased.

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Rug #3:

At the same time as all pools on @viresfinance were at 100% utilization and users had their funds stuck, Sasha was boasting $USDN was an undepeggable stablecoin, and that all his effort was going into it

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Rug #5

Not happy with this, Sasha went ahead and reneged on all his statements and promises yet again, the $USDN everyone was forced to convert to, was now gonna stop being a stablecoin, but instead a "basked of $WAVES assets", read: basket of useless shitcoins called $XTN

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This would finally allow users to withdraw their locked $USDC/$USDT, forcibly converted to $USDN, now $XTN, but at around 5-10 cents on the dollar, and with limited withdraws


17/ https://t.co/lLoOQX4yL3v1.vires.finance/governance/vot…

Rug #6

After so much deception and gaslighting on a solution that would allow users to finally withdraw from @viresfinance, Sasha closed the gateways (bridges), meaning you couldn't actually withdraw your USDT/USDC

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Tagging people that have reported or taked about this situation over the past year:
@Mister_Ch0c
@OrisDorch
@YouAreMyYield
@TimInCrypto
@eking0x
@avi_eisen
@FreddieRaynolds

@0xhamz

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