CEO’s departure amidst token controversy prompts MarginFi outflows of $190M

MarginFi, a Solana-based lending protocol, has seen nearly $200 million in user funds withdrawn over the past two days following the sudden resignation of its CEO, Edgar Pavlovsky. Pavlovsky cited internal and external disputes as reasons for his departure. Prior to his resignation, Pavlovsky engaged in a heated exchange with users on X who were requesting the launch of the MRGN governance token. In response to the controversy, withdrawals from MarginFi have reached $191 million in the last 48 hours. Other Solana-based lending protocols have accused MarginFi of not meeting their requirements. SolBlaze claimed that MarginFi failed to replenish BLZE token emissions, resulting in BLZE lenders not receiving yield on their deposits within a specific timeframe. MarginFi co-founder MacBrennan Peet defended against these accusations, stating that delays were due to chain congestion and user safety concerns. Despite the internal discord, MarginFi assured users that its products were unaffected and the team remained dedicated to the protocol’s growth. The launch date for the MRGN token has not been announced. In related news, a group called ‘SEAL 911’ has been formed to combat real-time crypto hacks.