Justin Sun Withdraws Billions Dollars Worth Crypto Out of Aave’s Lending Pools

DeFi protocol Ave is not as popular as it once was due to massive capital outflows in the last few hours.
Justin Sun Withdraws Billions Dollars Worth Crypto Out of Aave’s Lending Pools

In Brief: 

  • Justin Sun, the founder of Tron, has withdrawn a substantial amount of liquidity from DeFi protocol Aave’s lending pools
  • Despite the lack of proof, the recent allegations that a vulnerability exists in the network may have influenced Sun’s action.

According to Blockchain data, Justin Sun, founder and CEO of Tron, withdrew cryptos worth billions of dollars from Aave’s lending pools.

Thus, a substantial amount of liquidity has been removed from the platform, which has led to much higher interest rates.

Members of the Yearn community are believed to have pulled out over concerns expressed during a recent Twitter standoff between Yearn members and Aave members. During that standoff, Yearn members implied that Aave was vulnerable to exploitation.

Early Friday, Yearn founder Andre Cronje tweeted that Ave “is vulnerable to the same exploit” as the one that stole $130 million worth of tokens at Cream Finance on Wednesday.

Yearn core developer banteg tweeted, “Maybe don’t bad mouth other projects while sitting on an 11 figure vulnerability.” He later elaborated that he believes the exploit has unique liquidity requirements and was viable for 160 days in the past, but not today.

It is unclear whether this is the same vulnerability described by Yearn developers in their tweets following the Twitter spat. Aave says there have been concerns about xSUSHI collateral being exploited in Aave.

The company claims that it ran simulations and showed that anyone trying to take advantage of this exploit would lose money. Despite this, the company has made a proposal to disable functions related to xSUSHI as a precautionary measure.

Justin Sun is not afraid of taking revolutionary steps when it comes to investments, earlier in May he purchased over $150 million worth of bitcoin after a big dip in the prices. 

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