MarginFi exits $190M as CEO rages in token controversy.
About $200 million in user funds have left Solana-based lending protocol MarginFi in the past two days following the sudden resignation of the platform's CEO and allegations of misconduct from its competitors.
On April 10, MarginFi's former CEO, Edgar Pawlowski, abruptly announced his resignation from MarginFi, citing conflicts within and outside the company.
“I left mrgn today. From working on Marginfi, from the research arm, from everything,” said Pavlovsky, adding.
“I don't agree with the way things are done both internally and externally.”
Hours ago, Pavlovsky was trading on X with users requesting that the protocol launch its long-awaited MRGN management token.
“After today, it feels good to push back any kind of tokenism. I'll see what I can do internally to brick this,” Pavlovsky wrote in a now-deleted post on X on April 11, which also saw a heated response from the community.
Following the controversy — which appears to have been exacerbated by the former CEO's public insult — outflows from MarginFi have reached $191 million in the past 48 hours, according to Dunn Analytics data.
Competing protocols accuse MarginFi of spreading lies
The controversy escalated when groups from other Solana-based lending protocols began posting allegations that the MarginFi protocol did not meet the stated requirements.
SolBlaze said MarginFi was allegedly unable to fund the issuance of BLZE tokens to its users. Failure to complete the BLZE token release means BLZE lenders have not been paid their deposits within the specified time frame.
MarginFi co-founder Mac Brennan Pitt defended the claims, saying the latest delays were due to “chain congestion” and consumer security concerns.
Peet called SolBlaze's allegations “absolutely false” and said his platform consistently overpaid BLZE's lenders and borrowers.
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“Marginfi failed to recharge BLZE in last 3 days, not in three weeks. Yes, this is about de-chaining and prioritizing user safety,” he added.
Meanwhile, Solund founder Rutter took to X to share allegations that MarginFi tried to “blackball” Solund by spreading inaccurate information about Solund's total value being locked in and attacking its oracles.
Despite the internal conflict in the public eye, Marginfi assured its users that all of its products were unaffected by Pavlovsky's release, and that the team was committed to moving the protocol forward.
The team still hasn't informed its users when the MRGN token will be launched.
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