Community Concerns - Public Disclosure #2 - Founding Member SOV Collateral Loan

Starting on Feb 17 2026 1:19:47 AM just before the announcement from @yago at 2:10 PM https://forum.sovryn.com/t/staking-update-temporary-adjustment-to-staking-rewards 4 transactions totaling over 7 million SOV borrowed as much RBTC as they could from sovrynProtocol in the largest SOV collateral loan ever opened in Sovryn’s history. The largest loan before this was against just 111,890 SOV. This loan occurred from 4 addresses that have all been tied to a founding member who currently controls almost exactly just over 50% of VP in the staking contract and almost 25 million SOV in total (more to follow on this if necessary).

Feb 17 2026 1:19:47 AM 0x91AB7F5DF554566a8cDd2cFC722D0AA031021684 borrow()
Feb 17 2026 1:27:27 AM 0x4f3948816785e30c3378eD3b9F2de034e3AE2E97 borrow() - this address was also an original exchequer signing address on SIP7 listed as the first address.
Feb 17 2026 1:31:52 AM 0xb493b1Fb97F4cB2A1Ea43a9FFED201E797A2C155 borrow()
Feb 17 2026 1:34:59 AM 0x50110eF4e85A6a2E00a37D2eb30062000df07962 borrow()

This loan is still open and the borrowed RBTC has not moved. It is my concern this was opened with the intention for the SOV to liquidate as a way hiding the SOV sale and extracting more BTC than could have been from the now illiquid AMM. While there is nothing overtly wrong with this action from a random user, when taken in the broader context of all other recent events it is concerning that this loan puts RBTC lenders at risk of not being able to recover the lent RBTC. It also is concerning this action comes from a founding member who likely is in control of the entire protocol and has significant insight into sovryn operations especially around the timing of @yago’s fee announcement.

I am asking this founding member @Armando and @yago to please close this loan immediately and return the RBTC to lenders so this risk can be avoided. We should now also revamp the lending requirements of SOV as collateral now that it is significantly less liquid than it was years ago when lending against SOV collateral was introduced. Any exchange would have looked into this risk more than a year ago.

Provided good faith actions are shown here I will stop posting more public disclosures and we can move forward. This one is important as the lending protocol on sovryn is currently at risk. Thank you all please stay strong we are making progress and working towards positive changes for the entire Sovryn community - the team included!

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What is even going on here? Somehow that’s all next level crazy.

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It’s absolutely concerning. I believe honest answers from @Armando or @yago would go a long way to help calm concerns of bad intentions.

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When do we concede and call a spade a spade?

Rug?

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‘Leadership’ doesn’t seem to be interested at all in these alarming concerns!?

The other one neither

https://forum.sovryn.com/t/community-concerns-public-disclosure-1-exchequer-rbtc-to-okex/

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It’s likely a case of “ignore it and it’ll go away,” but in this instance it comes off as extreme incompetence to the point of negligent.

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The media tends to focus heavily on these cases, Terra (LUNA), Celsius Network, and FTX were some of the biggest stories of the last cycle.

There is also a growing ecosystem of independent investigators covering this space, including Coffeezilla, Dan Olson, Barely Sociable, and ZachXBT, among others.

Sov is also a BoS incubator… and seeing as we can never find out who does what maybe BoS is going to pull the same stunts… you never know?

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