The sudden resignation of MarginFi’s CEO, Edgar Pavlovsky, on April 10, citing internal and external disputes, has led to a significant outflow of funds from the platform, totaling nearly $200 million over the past two days.
Prior to his resignation, Pavlovsky had engaged in heated exchanges with users on X regarding the launch of MarginFi’s MRGN governance token. His decision to delay the token launch further fueled the controversy.
Competing Solana-based lending protocols, such as SolBlaze and Solend, accused MarginFi of failing to meet its obligations to users. SolBlaze alleged that MarginFi hadn’t replenished BLZE token emissions, leading to users not receiving their expected yields.
MarginFi’s co-founder, MacBrennan Peet, defended the platform against accusations, attributing recent delays to chain congestion and prioritizing user safety. Peet refuted claims of failure to replenish BLZE and asserted that the platform had consistently met its obligations.
Solend’s founder, Rooter, accused MarginFi of attempting to discredit Solend by spreading inaccurate information about its total value locked and attacking its oracles. These allegations further intensified the public dispute.
Despite the internal turmoil and public controversy, MarginFi assured users that its products remained unaffected by Pavlovsky’s departure and reiterated its commitment to protocol growth. However, the launch date for the MRGN token remains undisclosed.
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