Stablegains (YC W22) customers were defrauded out of $40M

https://twitter.com/fulligin/status/1534986470250778624

by akanet • 4 years ago

65 17 4 years ago

camdat2• 4 years ago

The irony of a company called "Stablegains" providing investments for a possibly incredibly volatile resource is astounding. Hope YC puts out a statement on this.

prattcmp• 4 years ago

Yeah, its quite disturbing that YC declined to comment - especially knowing how many similar crypto companies they are funding. I don’t want to see YC get targeted and brought down by the Feds.

verdverm3• 4 years ago

Wouldn't YC be one of the defrauded investors?

jjulius2• 4 years ago

They've already had ~21 days[1] to make a statement, too...

[1]https://news.ycombinator.com/item?id=31431224

mrpadie• 4 years ago

Previous discussion: https://news.ycombinator.com/item?id=31431224

parkerhiggins• 4 years ago

A few months ago I found Stablegains. I asked myself, “how is this possible?”, “why is this backed by YC?”.

Started digging around. Read their TOS and Privacy Policy. Analyzed their relationship with the Anchor protocol.

Then I found screenshots of the founder’s notebooks and code. Showing deposit amounts…

At that point I knew this wasn’t about actually delivering value to customers if they were so sloppy with their security.

eatonphil• 4 years ago

I thought the company was shut down. If the company was shut down how can it be sued?

akanet• 4 years ago

The lawyers contemplating the suit have decided not to sue, but you can sue companies that plan to shut down.

jjulius2• 4 years ago

The company is not shut down. Today is June 9th, and Stablegains says[1]:

Finally, as a result of recent events, we have decided to discontinue the Stablegains service beyond the end of June 2022.
On July 1, 2022, we will stop supporting the Stablegains service. The mobile app will be delisted from App Stores, the web interface will be taken offline, and it is very likely we will not be able to support withdrawals after that time.

[1]https://blog.stablegains.com/were-discontinuing-the-stablega...

Edit: Also, closing a business doesn't mean that you can no longer be held accountable for what happened while your business was opened. Statute of limitations and whatnot (IANAL) may differ from state-to-state, but allowing a business to be immune from prosecution simply because they closed would be one hell of a gaping legal loophole. It'd be like not prosecuting someone for theft or murder because they had stopped stealing or murdering lol.

perryh2• 4 years ago

Previously discussed [0] Seashell.com is another VC-funded startup that seems shady and is building an investment app advertising high yields sourced from DeFi. Took investment from Do Kwon and had a tweet from Terra [1].

[0] https://news.ycombinator.com/item?id=30375309

[1] https://twitter.com/terra_money/status/1481701273070047232

Stablegains (YC W22) customers were defrauded out of $40M

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