Synthetix Founder Appears to Have Sent Portion of Company Funds to Beleaguered Ex-Treasurer: EmberCN

As a seasoned crypto investor with a decade of experience under my belt, I’ve seen market volatility and liquidations become as common as the daily sunrise. However, the recent events surrounding Synthetix have left me both intrigued and concerned.

It seems that data stored on the blockchain indicates that Synthetix’s founder, Kain, withdrew approximately $6.5 million from the project’s funds and sent $86,000 to SynthaMan, who was previously the treasurer but was liquidated during the recent crypto market crash, according to a post made by blockchain investigator EmberCN on platform X.

EmberCN additionally mentioned that SynthaMan received around $112,000 in contributions over the last two days following a post where they stated that their entire SNX had been liquidated, leaving them with no assets.

SynthaMan posted on X: “Some individuals requested a donation wallet. If any of you are willing to donate or lend money until my ILV unlocks in September, you can send it to Spartan.eth. However, I wouldn’t ask if it weren’t necessary. I just need to make it through the next 1.5 months.”

According to Etherscan, the wallet identified as belonging to the project’s founder, Kain, transferred the tokens to the Spartan.eth account.

Synthentix is a protocol in the decentralized finance (DeFi) sector that offers liquidity for various derivatives platforms within the DeFi market. At present, it has a total value of $237 million locked (TVL), representing a drop of over 76% from its March figure of $1.02 billion, as reported by DefiLlama. The company’s treasury currently holds approximately $39.4 million, according to Token Terminal.

Synthetix did not immediately respond to CoinDesk’s request for comment.