Potentially insolvent bridge on Oasis Network causing massive depegging of wrapped USDT – Nearly $100m in assets missing

Rumors circulating across Crypto Twitter are claiming that the bridge provided by Valley Swap / EVODeFi on the Oasis Network is insolvent. The claim is more than $70m worth of USDT bridged from other networks onto Oasis is actually unbacked (amongst other assets), and that there are significantly less underlying assets in Valley Swaps coffers than they’ve issued onto Oasis Network.

As people begin digging into this, reports are nearing $100m worth of assets unaccounted for, with the bulk of it being in USDT. We’re witnessing the price of USDT ON THE OASIS NETWORK plummet: https://dexscreener.com/oasisemerald/valleyswap

In response of the turmoil, and to potentially slow the rate of people bridging away from Oasis, delaying the potential of their total collapse, EVO DeFi initially shut their bridge down, and are now requiring a strange and risky form of KYC via Google Forms to utilize their bridge moving forward.

Currently, you can trade 1 USDC for 3.20 USDT on Valley Swap: https://i.imgur.com/n7vgBpe.png

Oasis Network put out a statement on this earlier: https://i.imgur.com/WWGOeIk.png