The Umami Finance defi protocol offered yield products intended for institutional customers. However, on January 31, they announced that they would be halting yields amidst claims that they were concerned about regulatory strategy and undergoing a review.

Shortly after, the project CEO began dumping tokens on the market, cashing out 44,000 UMAMI tokens. These were ostensibly priced at $800,000, though the sell-off crashed the UMAMI price by more than 60% and ultimately netted the CEO around $380,000 of USDC.

Amidst the sell-off, a team member tried to reassure users that « the team resigned » but that also, confusingly, the « treasury assets are safe and in control of the team ».