Stablegains, which had invested in UST with a price plunge with customer funds, may lose 5.6 billion yen and face a class action proceeding

Stablegains, an investment service that entrusted customers' funds and promised an annual interest rate of up to 15%, lost about 44 million dollars (about 5.6 billion yen) due to the influence of stable coin 'TerraUSD (UST)' whose price dropped by 99% It became clear that it was. This has pointed out that 4878 users who have deposited their assets in Stablegains may have filed a class action proceeding.

Stablegains Faces Lawsuit After Losing $ 44M on UST --Crypto Briefing
https://cryptobriefing.com/yield-app-stablegains-faces-lawsuit-after-losing-44m-on-ust/

Stablegains is a service that invests with the funds entrusted to you by customers and returns the yield. Stablegains invested the deposited funds in USD Coin (USDC) and UST of Stablecoin, which is a virtual currency designed to stabilize the currency price, but the price of UST became almost worthless. The impact is estimated to have lost approximately $ 44 million.

What happened to the virtual currency 'Terra (LUNA)' whose price dropped by 99.99% --GIGAZINE /
https://gigazine.net/news/20220513-terra-luna-cryptocurrency-collapses/

According to Stablegains co-founder Kamil Ryszkowski, UST converted and retained funds raised from 4,878 users to 47,610,053 UST before the depegg (price divergence from the US dollar) occurred. It was said that it was. However, the price of UST is $ 0.076 at the time of writing the article, and you can see that it is losing a lot of money compared to the time when 1UST = $ 1 was maintained (peg).

It is also pointed out that Stablegains rewrote a part of the terms of use on May 12, 2022, which was in the midst of the UST price plunge, and added a sentence such as 'The risk that the peg will not recover is not 0'. increase.

Yikes. @stablegains took USDC and USD via wire from customers promising them 15%, put it all into Anchor without telling them, and skimmed 4% off the top. They have now changed the denominations in their app from USD to UST and are nuking the landing page & old terms. (1/2) pic.twitter.com/D6sVOI2bRG

— FatMan (@FatManTerra) May 19, 2022

On May 19, an email sent to Stablegains from Erickson Kramer Osbourne, a lawyer's office that also handles cryptocurrency cases, was leaked, and according to the letter, Stablegains 'disputed even if no proceedings were filed. You have an uncompromising obligation to preserve evidence that you know or reasonably need to know in connection with the proceedings in. ' These texts point out that the customer may already be trying to file a class action proceeding against Stablegains.

These guys are in deep trouble --they lost about $ 42m in funds from 4,878 customers and probably have no way to pay it back (they're a small startup) because they went all in on Anchor's invincibility. Conviction bets are great, but not when toying with people's savings. (2/2) pic.twitter.com/p9S5uFILoF

— FatMan (@FatManTerra) May 19, 2022

'We were informing our users about the potential benefits and risks, but we are very sorry that these risks have materialized. We want to help our users in the best possible way,' said Ryszkowski. I did.