You shouldn\u2019t put all your eggs in one basket, especially when that basket happens to be an unaudited DeFi project with an anonymous founder. Many people invested in the DeFi token \u201cSushi\u201d only to have the rug pulled on them by Sushi Token\u2019s anonymous founder \u201cChef Nomi.\u201d\u00a0 On September 5, Chef Nomi reportedly took 37,400 ETH (roughly $13,808,454 at press time) allocated to the Sushi Token development fund and liquidated it to his personal wallet. In an odd turn of events, however, Chef Nomi returned the money he previously liquidated, sending 38,000 ETH to the Sushi Token treasury. https:\/\/twitter.com\/NomiChef\/status\/1304442495342796800 https:\/\/twitter.com\/NomiChef\/status\/1304442521137811457 What happened There's a good chance that Chef Nomi returned the money to the treasury because Sushi Token investors were advised to lawyer up after the development fund money was liquidated.\u00a0 https:\/\/twitter.com\/prestonjbyrne\/status\/1302610570122792962 \u201cIn the case of SushiSwap, there are clearly steep losses across the market, and likely one source available for recovery, chiefly, 'Chef Nomi,'\u201d said lawyer Preston Byrne. \u201cThere is only one legitimate way to access those funds, and that is by winning a lawsuit.\u201d It appears that Chef Nomi returned the funds out of fear of law enforcement giving him a harsh prison sentence, and because the Sushi Token community accosted him for liquidating a portion of the dev fund. After Chef Nomi liquidated on September 5, the price of Sushi Token plummeted from $4.44 to $1.20 per token, a whopping 73% decrease. After returning the money, Chef Nomi took to Twitter, profusely apologizing for his actions and saying he will still play a role in the greater discussion around Sushi Token and it\u2019s technicalities, but that he will no longer play a role in the governance of Sushi. What\u2019s next? The fate of Sushi protocol is now in the hands of FTX CEO Sam Bankman-Fried.\u00a0 https:\/\/twitter.com\/SBF_Alameda\/status\/1302534617522556929 After Chef Nomi liquidated the dev fund on September 5, he transferred control of the project to Bankman-Fried\u2013but does it matter? Although the price of Sushi Token has partially recovered, the liquidation fiasco caused many individuals to lose hope in DeFi projects and even contributed to somewhat of a crash in the DeFi ecosystem.\u00a0 When the dev fund liquidation happened on September 5, the total value locked in DeFi protocols was roughly $8 billion. After Chef Nomi liquidated, many DeFi tokens crashed, and the total value locked in DeFi protocols fell to $6.14 billion\u2014a 25% decrease that was kicked off by the Sushi Token liquidation. As always, we advise you to proceed with caution when it comes to DeFi projects. DeFi is a perpetual Ponzi Scheme that has sent the transaction fees on Ethereum skyrocketing and caused a bottleneck in the ETH network. No value is created on DeFi platforms but investors flock to them because they have been told they can make a quick buck by investing in DeFi. But as you see with Sushi Protocol, one of the most popular DeFi projects, DeFi is a house of cards that can crash at any moment.