The VC-funded app “Stablegains” is being sued for losing $42 million from 4,878 customers. They promised 15% APY and achieved this by putting all of their customers’ funds into the 20% APY Anchor Ponzi as UST.

May 19, 2022, 10:37 AM by Alex Mark

by POTATO_IN_MY_LOGIC

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

Thread of Stablegains talking about the UST depegging as it was happening.

Found via HN.

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