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Mochi founder Azeem Ahmed sold 550K CVX from a Curve-linked stash as on-chain probes allege over $8M in diverted rewards and $54M in DeFi losses.<\/p>\n \n Summary<\/span>\n <\/p>\n <\/p>\n Azeem Ahmed, founder of Mochi Finance and GaiaDAO, has sold approximately 550,285 Convex Finance (CVX) tokens from wallets linked to a 2021 Curve Finance drain, netting around $946,000 and triggering a double\u2011digit intraday slide in CVX\u2019s price. On March 19, the tokens were liquidated<\/a> at an average price of about $1.72, sending CVX from roughly $1.88 to $1.68, a drop of more than 10% according to on-chain data reviewed by Crypto Daily. The proceeds were routed to a multisig associated with the Mochi protocol, which held about $864,858 in assets after the sale, while another 500,000 CVX remain locked on Convex Finance.<\/p>\n The CVX position itself originates from Mochi\u2019s controversial November 2021 move to mint its USDM stablecoin against MOCHI and drain roughly $46 million in DAI-equivalent liquidity from the USDM\/3CRV pool on Curve. At the time, Mochi used 10 billion MOCHI tokens\u2014assigned a hard\u2011coded oracle price despite near\u2011zero market value\u2014to mint 46 million USDM, convert the proceeds into 9,876 ETH, and purchase about 1,050,285 CVX, which were then locked on Convex Finance, according to certified crypto\u2011trace reports by forensics firm IFW Global. Curve\u2019s Emergency DAO responded<\/a> by killing Mochi\u2019s gauge and blocking further emissions after characterizing the maneuver as a \u201cclear governance attack,\u201d a clash that became part of the broader \u201cCurve Wars\u201d over CVX and CRV voting power and emissions.<\/p>\n In the aftermath, Ahmed re-emerged through GaiaDAO with a Peg Rebalancing Module (PBM) pitched as a mechanism to distribute CVX staking rewards from the locked position to USDM holders and gradually restore the stablecoin\u2019s peg. The PBM charged a 2% management fee and 20% performance fee payable to Ahmed, but according to Curve governance forum records<\/a>, he unilaterally hiked the performance fee to 50% before community backlash forced him to reverse the change. By November 2025, reward distributions from the 1,050,285 vlCVX position had stopped entirely, and on-chain data indicates those rewards were rerouted to a wallet that also acts as a signer on the CVX multisig<\/a>, with the value of diverted staking rewards alone estimated at more than $1.6 million.<\/p>\n <\/p>\n Beyond staking flows, investigators allege<\/a> that about 2,198 ETH\u2014worth roughly $6.67 million at the time\u2014and $471,429 in USDC were drained from Mochi\/ETH liquidity pools and never returned to depositors, while airdrops from protocols including Prisma, CNC, VELO, LFT, and YB reportedly remained unclaimed or undistributed. Aggregate investor losses tied to the Mochi ecosystem and its associated pools are now estimated at over $54 million, according to IFW Global\u2019s certified reports.<\/p>\n Ahmed\u2019s track record stretches back to at least 2020 and spans Yieldfarming.insure (SAFE), Armor.fi, Mochi Finance, and GaiaDAO, with repeated accusations of misappropriating community funds. During the original Mochi\u2011Curve confrontation, Curve alleged that Mochi\u2019s strategy amounted to a governance attack, while Ahmed insisted in an interview with Crypto Briefing that the team had simply taken a \u201cbold approach to gaining voting power in the DAO\u201d and argued that the \u201cDeFi Cartel \u2026 feels threatened that a small player on the outskirts\u201d could challenge incumbents. Robert Forster, Ahmed\u2019s former co\u2011founder at Armor.fi, later accused him publicly of stealing \u201cmillions in LP tokens,\u201d a charge Ahmed denied by claiming the funds were \u201creturned in full\u201d and counter\u2011alleging that Forster had taken money for personal use.<\/p>\n\n\n\n