Why Ripple-Backed OpenEden Saw a Sharp TVL Drop in 24 Hours

OpenEden, a platform focused on tokenizing real-world assets (RWA), recently experienced a significant drop in its total value locked (TVL) following allegations against its co-founder, Eugene Ng.

As a growing name in tokenization, OpenEden has attracted industry heavyweights like Ripple and Binance. The platform aims to deliver a cost-effective and accessible way for investors to tap into tokenized treasuries, offering blockchain-based access to traditional financial assets.

Why OpenEden’s TVL Declined by Around $30 Million

According to DeFillama data, OpenEden’s TVL dropped sharply from around $153 million to $123 million on November 1. However, the metric has rebounded slightly to $134.5 million at the time of writing.

Total value locked, or TVL, measures the amount of cryptocurrency held in a platform’s smart contracts. When TVL declines, it suggests that users may be withdrawing funds, often due to reduced confidence in the platform or a search for better investment options.

Read more: What is Tokenization on Blockchain?

However, market observers have linked this decline in OpenEden’s TVL to recent allegations against Ng. On October 29, a woman named Hana shared photos and messages on social media platform X, alleging that an executive from DWF Labs had drugged her. Though she did not name the individual, subsequent reports identified Ng, a notable figure in the Asian crypto sector and a former head of business development at Gemini, as the accused.

“I went briefly to the bathroom that night during our meeting and when I came back I took a few sips of the drink before the aggressor stepped outside to make a call. The waitress then rushed over to alert me that my drink has been spiked,” Hana alleged.

In response, both OpenEden and DWF Labs took swift action against the alleged suspect. OpenEden initially suspended Ng and soon after confirmed his termination, emphasizing its commitment to taking the allegations seriously and condemning Ng’s alleged actions.

On November 1, Andrei Grachev, head of crypto market maker DWF Labs, announced that the firm would withdraw its funds from OpenEden and pursue legal action against Ng. Grachev expressed shock at Ng’s alleged actions and called for severe consequences against him.

“I’ve seen the CCTV video, I was shocked at how he could do such shit. It’s the worst that a man could do, and it should entail severe punishment, no mercy. We withdraw our funds and consider further legal actions against Eugene,” Grachev stated.

Read more: What is The Impact of Real World Asset (RWA) Tokenization?

Meanwhile, the incident has sparked wider discussions within the crypto sector around the safety and treatment of women, an issue that remains pertinent in a predominantly male industry. Following these allegations, Ng’s social media profiles on platforms like X and LinkedIn have been deactivated.