a16z-backed Goldfinch Lending Protocol Faces Tens of Millions in Defaults, GFI Token Drops 99.8%

Odaily reports that a contributor to the African crypto lending project Goldfinch has claimed that the project has seen tens of millions of dollars in loan defaults and has lost over $300 million in market value from its peak.

The project, which previously raised $25 million in a round led by Andreessen Horowitz (a16z), has seen its GFI token price drop 99.8% from its all-time high of $32.94 on January 11, 2022, to below $0.07. One depositor stated that out of 8 borrowers, 2 have defaulted and 6 are in restructuring, with over $50 million in funds being mismanaged. Furthermore, loans including a $5 million loan to Tugende Kenya, a $20 million loan to Stratos, and a $10.15 million loan to Lend East have all experienced varying degrees of default or impairment, with cumulative losses exceeding $18 million. (protos)