Blockchain Sleuth Warns About Unrevealed ‘Critical Flaws’ in Ethena

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Tardfiwhale, a pseudonymous blockchain sleuth who predicted the fall of Luna and UST, has warned about critical flaws in Ethena, a rising blockchain synthetic dollar stablecoin protocol. Tardfiwhale is asking for donations to certain entities before revealing these alleged flaws, as Ethena has no bug bounty program.

‘Critical Flaws’ Present in Ethena According to Pseudonymous Blockchain Sleuth

Ethena’s decentralized protocol is being scrutinized by actors in the blockchain field. Tardfiwhale, a pseudonymous blockchain sleuth, has supposedly found “critical flaws” in the system that backs Ethena, which has already issued more than $1.5 billion worth of USDE, a synthetic dollar stablecoin.

Since March 15, Tardfiwhale has been alerting about alleged flaws that will supposedly make protocol users “lose a lot of money” given how its system currently operates. Before, the investigator accurately predicted the demise of LUNA and UST and alerted on possible bank runs involving the OHM platform.

Nonetheless, Tardfiwhale won’t reveal the origin of these problems for free, as he is asking for donations to be paid to third parties after these flaws are revealed and proved to exist. First, he asked for $500,000 in donations, with half going to Protocol Guild, a group of Ethereum developers. The other half would be divided between Zachxbt, another crypto researcher, and the legal defense of Tornado Cash devs, who are facing money laundering charges.

On March 18, he increased the bounty to $1 million, maintaining the same proportions for the recipients of these donations. Tardfiwhale explained this had to do with the involvement of Maker and Mantle in Ethena, protocols that will invest hundreds of millions in Ethena.

On his motivations for destining these donations to third parties before revealing the problems he found in Ethena, he stated:

This is a chance for me to give back, and after all the pain caused from UST, FTX, Celsius, etc., it would be sad to see another disaster with USDE.

He emphasized that revealing these flaws would yield him no benefit and that he is only trying to avoid another disastrous event for the crypto community.

Ethena is on the verge of airdropping 750 million ENA, its governance token, and recently announced a campaign to include bitcoin as a backing asset.

What do you think about Tardfiwhale’s allegations of Ethena’s “critical flaws”? Tell us in the comments section below.

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