Wonderland DeFi Protocol to Shut Down After Fraud

The Wonderland DeFi Protocol has announced its closure after revealing that its treasury manager was a convicted felon.

Wonderland was thrown into disarray after a Person on Twitter revealed 0xSifu’s true identity as Michael Patryn. He must have earlier pled guilty of credit card theft, larceny, grand theft, and computer crimes, serving an 18-month sentence in federal prison in the United States. Patryn was also a co-founder of the defunct cryptocurrency exchange QuadrigaCX, which went bankrupt after it was discovered that $190 million in customer money had gone missing. Patryn, on the other hand, was not charged with any malfeasance in this particular instance because he had left the company a few years before.

Daniele Sestagalli, Wonderland’s co-founder, had stated that he was aware of Patryn’s history but did believe in offering people a second chance.

Patryn was later asked to resign from the role of treasury only after the project sparked a hurricane of controversy in its community.

Sestagalli stated last week that he wished Wonderland to keep on going but recognized that certain people really wanted the initiative to be terminated and funds returned to holders. As a consequence, he organized for a vote on the community’s future path.

The polls were shuttered in the early morning of Monday. Overall, 55 percent of the respondents agreed that Wonderland must not be closed, while the remaining 45 percent agreed that the initiative should be canceled and the treasury finances brought back to their holders.

Sestagalli went on to say that he was determined to find a new home for those who still consider his vision and the Wonderland experiment in general.

For Wonderland’s born and bred TIME token, the controversy is just nothing short of disastrous. According to CoinMarketCap statistics, its own value dropped from $879 to $384 in the last week, a 56 percent drop. When you zoom out, TIME has already dropped 97.26 percent from all-time peak levels of $14,185.38 set on November 16 of last year. Due to the obvious interdependent nature of DeFi procedures, Wonderland’s downfall is also sending shockwaves through the remainder of the crypto ecosystem. Terra has become one of the largest casualties, suffering increasingly large losses when compared to larger altcoins.

LUNA has dropped 7.37 percent in the last 24 hours. On a seven-day basis, it has fallen by 24.25 percent, despite the fact that all of the top 20 cryptocurrencies are in the green.

In the midst of the chaos, 0xSifu’s Twitter handle has indeed been pretty calm — with only a few retweets in recent times.

David Cox

David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.

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