FTX derivatives exchange CEO Sam Bankman-Fried (SBF) has taken over SushiSwap following the sudden cash-out by project founder “Chef Nomi.”

Chef Nomi, the pseudonymous founder of decentralized finance (DeFi) protocol SushiSwap, created a wave of controversy on September 5 after cashing out his entire holding worth over $10 million in ETH. The transaction followed on the heels of criticism from the community after it was revealed that Chef Nomi held nearly half of the coins in the protocol. 

SUSHI, which started as a fork of Uniswap, plummeted in the aftermath of the founder’s withdrawal, dropping from $9.50 to $1.13 and generating outrage across the landscape of decentralized exchanges. 

On September 6, FTX’s CEO published a chain of tweets explaining he had taken over SushiSwap in an attempt to salvage the protocol. SBF praised sushi as a promising automated market maker (AMM) product while blasting the former founder for hurting the DeFi community. 

Despite withdrawing more than 20,000 ETH and 2.5 million SUSHI from the project’s development fund, Chef Nomi insisted the move was not an exit scam. Instead, he compared his situation to that of Litecoin’s founder Charlie Lee, who sold his entire LTC holdings during a price peak in late 2017.

Featured Image Credit: Photo via Pixabay.com