- DWF Labs withdrew 2 million $CRV tokens transferred to Binance a week ago.
- Andrei Grachev, co-founder of DWF Labs, says the withdrawal is for inventory management.
- DWF Labs was one of the many companies that acquired CRV tokens following Curve Finance’s hack.
Digital asset market marker and Web3 investment firm DWF Labs has transferred 2 million $CRV tokens, worth $972K, from Binance a week after it deposited the tokens in the crypto exchange. On-Chain analytical platform Lookonchain made this revelation today in a recent post on X.
DWF Labs(@DWFLabs) withdrew 2M $CRV($972K) from #Binance 40 mins ago.https://t.co/ufyoilyFq8 pic.twitter.com/bohHiL4cmk— Lookonchain (@lookonchain) August 29, 2023
Confirming the news, Andrei Grachev, co-founder of DWF Labs, said the company has transferred the tokens to its on-chain wallet as part of “some inventory management.” He added further that the company may send the tokens back to Binance in the future. But if it will, he said they will keep the crypto community posted.
Like the initial transfer to Binance, the withdrawal of the tokens has raised speculations within the crypto community. Initially, when the funds were transferred, rumors were circulating that the transfer was a potential market manipulation. Grachev, however, clarified in a post on X that the funds were for trading needs.
DWF Labs was one of the companies that accumulated several $CRV tokens following exploits on the Curve protocol. Grachev was one of the parties involved in an over-the-counter (OTC) agreement with Michael Egorov, the CEO of Curve Finance.
The OTC agreements were made to salvage Egorov’s debt position after the Curve Finance Hack. Since the exploit, the value of CRV has been severely depleted, putting significant pressure on Egorov’s position.
As part of the OTC agreement, DWF Labs, on August 1, amassed 12.5 million CRV tokens from Egorov, acquiring them at $0.4 apiece. The Binance deposit saw the total number of CRV tokens with DWF Labs reduced to 10.5 million. But with the recent transfer, the company is now again in custody of the 12.5 million tokens.
Since the exploit, which resulted in a loss of over $50 million, Curve has been the subject of growing market sentiment. This has also affected the token’s price. Data from CoinMarketCap shows that CRV is trading at $0.4633 at present time. The current price is a 2.22% drop in the past 24 hours.
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