According to various Twitter reports as well as our own investigations, the EVODeFi team is estimated to have around $50 million worth of varying debt—debt taken from their platform’s funds and which may not be able to be paid off.
$50 Million Vanished From Users’ Funds
The team behind EVODeFi, a cross-chain platform offering a set of crypto products on Binance Smart Chain (BSC) & Polygon, and popular multi-chain bridge, invested users’ funds on Terra’s Anchor Protocol in order to fund their cross-platform bridge as well as sustain high APR on ValleySwap, the second project owned by the team. In a further effort to boost APR on ValleySwap, the team minted unbacked USDT, causing funds on Oasis Emerald to be unbacked, the network ValleySwap was based on.
With the collapse of Terra’s ecosystem, however, EVODeFi lost their investment in Anchor Protocol, their unbacked USDT was worthless, and they had no liquidity to be able to continue and run their bridge.
Thus came the downfall. EVODeFi was forced to close their bridge, trapping millions of dollars worth of users’ funds on Oasis, with no way to move funds out of Oasis without losing a majority of the fund’s value.
This has been a stressful and confusing situation for affected users, however, we hope this update will answer common questions and provide insight into the steps our team has been and continues to take as a part of our community-first Know Your Customer (KYC) program.
Before we get into the good stuff, it’s important to read the stuff we will NOT do.
What Will RugDoc NOT Do?
First, RugDoc will not publicly display KYC information for EVODeFi clients or any other KYC customer. We do not encourage witch hunting. We have seen horrendous examples of this in the past and will not coordinate with “vigilante-type” groups. For reference, please go to this link and read the section on ‘Little Doge NFT.” Those who do wish to seek justice are advised to contact their relevant law enforcement agencies that can help in this regard.
Remember, we are NOT the Crypto Police—instead, RugDoc exists as a safety and education platform that provides services that crypto users may find helpful, such as KYC.
OK – So What DID RugDoc Do?
As part of our KYC policy, we quickly coordinated with relevant parties such as Binance and Beefy to get a sense of what was going on with EVODeFi, confirm our KYC information as valid, and freeze their accounts on centralized exchanges to limit the further movement of funds.
The Rug Doctor and a few members of our team proposed an action plan for EVODeFi, composed of actionable steps to mitigate community damage to the best degree possible and allow for the highest recovery of funds. We began coordinating with their team to walk them through discrete steps and ensure the plan could be fully executed. While we initially had some cooperation, the discussion with the EVODeFi team tapered off and we haven’t heard a response in weeks. As a result, millions of dollars worth of users’ funds are still lost.
Since the cease of communication from the Evo team, RugDoc reported and has been diligently working with multiple local and federal law enforcement agencies to take action. We are working on this case and encourage affected users to report their losses to relevant law enforcement.
What We Need From You
As mentioned before, we need your help. Since we have contacted law enforcement, the ability for DeFi-competent law enforcement to take on this case also depends on the reporting and support from victims of the EVODeFi exploit—ideally those from New York, Tennessee, or California to help the case. (See the announcement here).
Special Note: This is not a guarantee of a refund or compensation, as EVODeFi has not yet proven that they can reimburse users who have suffered financial losses as a result of using their bridge.
So… Now What?
To be clear, aside from being a KYC customer, we have no affiliation with EVODeFi.
Despite this, and as unwavering proof of our mission—to provide a safer DeFi experience for all crypto users, we established immediate support to assist EVODeFi victims, allowing open communication among members, moderating conversations, and providing advice and support as needed.
This was a steep learning curve for us, although there was little to no benefit to having EVODeFi-related conversations in our chat, we felt it was the right thing to do for the victims—and we still do. This is something we usually do for rug-related events and exploits.
However, for EVODeFi in particular, we have reached a tipping point where we are struggling to accommodate the requests, comments, and questions users may have—the majority of which are repetitive.
Some are even attacks on our team, which is unjustified given the lack of connection between us and the project, and the measures we have and continue to take in bringing justice to the community. Finally, and as previously stated, we are not receiving clear communications and action points from EVODeFi, and we cannot force them to do so. This makes updating the community and coming to a sound conclusion difficult for us all.
That being said, we strongly advise you to file a case with law enforcement and coordinate with any other members who may be affected to align and put pressure on EVODeFi to act.
We have already started several law enforcement cases, and although we cannot promise any outcomes in such a complicated case, we have gone above and beyond any other KYC provider to offer support via our chat, reach out to blockchain networks affiliated with EVODeFi, freeze funds, coordinate law enforcement action, and provide action plans to EVODeFi among many other points.
As such, RugDoc has done our best in this situation and we formally request if you have not yet done so to also reach out and do your part so we can hopefully put an end to this matter together.
If there are any cases presented to law enforcement that require our assistance, please contact us at [email protected] and our legal team will liaise with them directly.
For more information about KYC, please familiarize yourselves carefully with the following pages:
Disclaimer: This article is RugDoc’s opinion only and may not represent actual fact. What happened in reality may differ than what is stated in this article. None of this is financial advice.