$63 300 000 USD





"Midas.Investments is a custodial crypto-investment platform for staking core crypto assets and DeFi tokens. In four years Midas.Investments got over 7000 investors all over the world and more than 200 million dollars in Assets Under Management (AUM). Investors receive access to the vast range of crypto-assets, swap feature, and yield-automated-portfolios on the platform, which makes Midas the go-to place to build the yield-generating portfolio."


"Midas has a vast variety of DeFi yield strategies, such as automated concentrated liquidity providing on Uniswap V3, token-incentivized liquidity pools, lending strategies, yield-bearing assets, and more. Each strategy is reviewed by the strict risk management policy and hedged from impermanent loss volatility or token depreciation. The funds are managed automatically through the non-custodial wallet infrastructure on Fireblocks, which has the best security features on the market."


"Midas.Investments have the long-term vision of providing users with a stable and profitable passive income source that would help them earn one of the highest yields on major cryptocurrencies such as BTC, ETH, and USDT. There is no minimum limit on deposit amounts or any lock-up periods.


The platform generates yield through hedged strategies which uses investment instruments such as lending and borrowing, hedged token farming, DeFi yield vaults, and concentrated liquidity provider on Uniswap V3 Midas.Investments intends to become a gateway between centralized and decentralized finances while also providing DeFi market exposure to investors and users."


"We are a team of innovators consisting of 65+ members. Our mission is to create the investment platform of the future which combines the best of the CeFi and DeFi ecosystems: the simplicity and accessibility of CeFi with the transparency and innovation of DeFi."


"I’m Trevor, the CEO of Midas Investments, and I am writing to you today with a heavy heart to announce that the Midas platform is closing down. In the spring of 2022, Midas DeFi portfolio suffered a cumulative loss of 50 million dollars (20% of $250 million AUM). After Celsius and FTX events, the platform experienced over 60% of AUM being withdrawn, creating a large asset deficit. Based on this situation and current CeFi market conditions, we have reached the difficult decision to close the platform.


Despite the damage that was done by this event, this is the only way to move forward for Midas to build something relevant to this new market. We aim to focus on a new project that aligns with our vision for CeDeFi. This project will be fully transparent, on-chain, and built with the goal of offering a new and improved investment experience."


"Over the past eight months, our team has been focused on identifying and capitalizing on opportunities to balance our assets and liabilities. This included launching CeDeFi strategies, seeking fundraising, and exploring opportunities with DeFi protocols. Despite these efforts, the extensive withdrawals due to the insolvency of Celcius and FTX, coupled with reduced yield opportunities on the market, made it impossible for us to cover daily payouts to users due to the assets deficit.


I want to clarify that only Midas C-level employees were aware of the asset deficit. The community team, marketing team, support team, IT team, and platform team were not aware of this issue. The asset deficit was caused by the long-term risk of DeFi investment, the instability of our business model after the loss of assets, and the illiquidity of the Midas token."


"I remember a lot of people here saying Midas Investments is the only good platform to keep your money on and earn. They are completely transparent and I trust them. So their token went from $38 to zero over night, their swap feature was shut off and they sent out that dreaded email nobody wants.


The one caveat though, is maybe they aren’t complete scumbags and have full liquidity for their customers. Because they state in the email people will be able to withdraw 100% of their funds. Just if you had it all in Midas, you’re hooped.


I know these guys weren’t very big, so a lot of you probably haven’t heard of them, but just another reminder to people still taking these big risks with these CeFi platforms."


"This is such an obvious Ponzi its remarkable how some people say otherwise.


They were offering high yields and when someone was cashing out they were dipping into other customer funds. So they didn't drain all the funds, but called it quits with returning 55% of assets to customers.


Still scammers, still scumbags, they just didn't wait till zero.


NEXO is NEXT-O!!! (eeeew, that pun is so bad, I am going to bed and remorse)"


"Decomposition of balance deficit:


$14 million Ichi protocol in April 2022 $15 million DeFi Alpha portfolio in Spring 2022 $1.5 million due to Harmony bridge hack $3 million due to FTM token’s price change $15 million due to balancing MIDAS token sells on an illiquid market $10 million due to paying higher rewards in native and MIDAS Boost than what was being earned through DeFi"

The Midas Investments platform closed, with investors short by $63.3m - more than half of all invested assets on the platform. A final post by the CEO outlines where the funds were lost. There was some discussion of making up the difference through launching a new venture.

Sources And Further Reading

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