SushiSwap (SUSHI), a fork in Uniswap created by controversial developer „Chef Nomi“, has been handed over to FTX CEO Sam Bankman-Fried on September 6th in an unexpected acquisition. The decision came after SUSHI fell from $9.5 to $1.13 in just five days.
Controversially, the creator sold some $13 million in development funds, causing the market to fall
The transfer of the project to the prestigious SBF comes after Nomi reportedly withdrew 20,039 ETH and 2,558,644 SUSHI from the development fund. The development fund’s capital was supposed to be used to finance the project’s development.
Spencer Noon, the head of DTCC Capital, was one of the first to see the sale of SUSHI tokens by Chef Nomi. He wrote that:
„The anonymous founder of SushiSwap sells all his Sushi. WHO COULD HAVE PREDICTED THIS?!“
Acknowledging the community’s outrage, Chef Nomi said he didn’t „get out of the scam. He said he deserved the development fund, since he created the project.
SushiSwap General Manager: „Talking doesn’t mean anything and the code shows everything“
„People asked me if I got out of the scam. I didn’t. I’m still here. I will continue to participate in the discussion. I will help with the technical part. I will help ensure that we have a successful migration,“ he said.
But prominent developers of the decentralized finance space (DeFi) were not convinced. Andre Cronje, the developer of Yearn.finance, who has been praised for the transparent and decentralized launch of YFI, asked:
„What do you mean by „without me“? Are you leaving the project? If so, will you return the Crypto Trader development funds? All you’ve done so far is hand over a token that was built on the Uniswap Protocol. Aren’t the funds supposed to be for continued development? Aren’t you that developer?“
As SUSHI continued to collapse, SBF took over the protocol, to which the community reacted positively. SBF said that SUSHI’s keys would be transferred to a multi-sig, which would then be decentralized.
SBF also criticized Chef Nomi’s actions but said that if Nomi did not withdraw, Sushi could collapse. He summed up the whole debacle like this:
„a) Nomi sucks and hurts the community
b) Sushi holds promise as a dynamic community built WMA
c) If Nomi does not withdraw, there is no more Sushi
d) If Sushi adds a division in Serum, we will give 5mm of SUSHI to the farmers
e) Anyway, the MMAs come to Serum“.