Uniswap Holders Accuse DeFi Education Fund Of Insider Trading
Research analyst Igor Igamberdiev unearthed a wallet address connected to one of the DeFi Education Fund’s (DEF) committee members, Larry Sukernik. The wallet shows the sale of Uniswap’s governance about 5 hours before Sukernik’s fund sold 10 million USD worth of the token.
Looks like Larry Sukernik, one of the multi signers behind the $20M DeFi education fund, dumped UNI five hours before the $10M OTC sale. pic.twitter.com/JWlxZC2L4Q
— Igor Igamberdiev (@FrankResearcher) July 13, 2021
Via Twitter, Sukernik confirmed the wallet belonged to him. However, he contends that the timing is just a misunderstanding.
“The UNI I sold out of my address was from a grant a group of us received a few weeks back,” Sukernik said. “*Just* noticed we received it so sold it for USDC to send it to people. 2. The UNI for DEF was already sold by the time of the above sale.”
DEF originally announced the OTC sale of the Uniswap tokens via Twitter, which makes verifying the exact time of the trade and consequently comparing it to the time of the sale in Sukernik’s wallet difficult.
In the same Twitter thread, Igamberdiev pointed out that Sukernik didn’t send any USDC to “people.” To which Sukernik responded, “Waiting on people to share addresses :).”
Contentious Community Vote
The accusation comes following a contentious approval from the Uniswap community. After being rewarded 20 million USD worth of Uniswap, DEF sold half of their Uniswap tokens on July 12th, despite promising they would sell them over the course of 4-5 years.
DEF, founded by student organization Harvard Law BFI, was originally known as the DeFi Defense Fund. It was rebranded after the initial proposal received lukewarm reviews from the Uniswap community because of a lack of roadmap or commitments from legal and policy experts in the field. By the third round of voting, DEF won – 79 million voters saying “yay” vs. only 15 million with “nay.” But, as Chris Blec of DefiWatch points out, the weighting of the votes is based on how much of the governance token you own.
— Chris Blec (@ChrisBlec) July 13, 2021
Larry Sukernik’s Blog
Back on May 12th, Sukernik wrote about DeFi treasuries on his personal blog. Accompanied by the picture above, he detailed his excitement over project treasuries unlocking “tokens [that] are sitting in contracts collecting dust.” In particular, he points out the 5 billion USD in Uniswap’s treasuries.
At no point does Sukernik discuss what could be done with this money, only that Uniswap and other DeFi projects have a lot of it. Though, he does mention that lobbying stakeholders will be difficult, before tying things up with Drake lyrics.
I got car money, fresh start money
I want Saudi money, I want art money
I want women to cry and pour out their heart for me
Dreams [only] money can buy
This content was originally published here.