DeFi Protocol MarginFi Suffers $190M Outflows

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In the past two days, roughly $200 million in user funds have been withdrawn from MarginFi, a lending protocol on the Solana blockchain.

This sudden withdrawal came after MarginFi’s CEO, Edgar Pavlovsky, resigned and accusations of wrongdoing were made by competing platforms.

On April 10, Pavlovsky announced his resignation from MarginFi due to disputes within and outside of the company.

He stated:

“I resigned from mrgn today. From working on marginfi, from the research arm, from it all.”

This was followed by a confrontation between Pavlovsky and users on X, who were requesting the launch of MarginFi’s long-awaited MRGN governance token.

Pavlovsky then deleted a post on X where he stated that he would push back the launch of the token, and there was a strong response from the community. Since then, users have withdrawn around $200 million from the platform.