If you’ve been following the world of Decentralized Finance, you probably heard of SushiSwap, a decentralized protocol which yielded ski-high returns before its anonymous founder “Chef Nomi” withdrew approximately $14M of developer funds. This unexpected move nearly tanked the entire project, before decentralized exchange FTX founder Sam Bankman-Fried stepped in to take over.
The SushiSwap saga did not end here. Just a few hours ago, Chef Nomi took to crypto twitter to apologize.
Proof of transfer of funds was posted subsequently.
Notably, Chef Nomi apologized to CZ of Binance, the largest crypto exchange by volume worldwide. Binance was heavily criticized for listing the SUSHI token in the first place and not protecting its investors.
Although the Chef Nomi’s move was wildly applauded, some skeptics responded with concerns that FTX, Binance and Band Protocol were behind the return of the funds.
FTX and Sam Bankman-Fried have a vested interested in the success of SushiSwap as investors and now shepherds of the project, while Binance is working hard to maintain a clean reputation as they continue building their brand in the U.S.
While the involvement of Band Protocol is purely speculative at this point, one of its founders has been publicly named as the potential Chef Nomi. If this claim is true, it is very likely that Band Protocol’s partners and venture capital investors also had a vested interest in the return of the funds.
One thing is clear – the SushiSwap Saga is a warning to all investors venturing into DeFi. This is the ‘wild, wild west’ of Finance.
At the time of writing, the price of the $SUSHI token rebounded to $2.80, a one day increase of 15%.