CEO’s Departure and Token Controversy Prompt MarginFi to Experience $190M in Outflows

MarginFi, a Solana-based lending protocol, has experienced a significant outflow of user funds amounting to almost $200 million over the past two days. This comes after the sudden resignation of the platform’s CEO, Edgar Pavlovsky, who cited internal and external disputes as the reason 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, Pavlovsky expressed his intention to delay the token launch, which further fueled the controversy. As a result, withdrawals from MarginFi have reached $191 million in the last 48 hours. The situation worsened as competing Solana-based lending protocols accused MarginFi of failing to meet their requirements. SolBlaze claimed that MarginFi had not replenished BLZE token emissions for its users, resulting in a lack of yield payments. However, MarginFi co-founder MacBrennan Peet defended the platform, attributing the delays to chain congestion and user safety concerns. Similarly, Solend founder Rooter accused MarginFi of spreading inaccurate information about Solend’s total value locked and attacking its oracles. Despite the internal discord, MarginFi reassured its users that its products were unaffected by Pavlovsky’s resignation and that the team remained committed to the protocol’s growth. However, the launch date for the MRGN token has not been announced. In related news, a group called ‘SEAL 911’ has been formed to combat crypto hacks in real time.