Terra fallout: Stablegains lawsuit, Hashed loses billions, Finder wrong and more....
Fallout from the collapse of the Terra ecosystem continues to unfold with the United States-based yield generation app Stablegains facing potential legal action over its losses from the event.
Users believe Stablegain has allegedly lost up to $44 million worth of deposited funds based on a post on a Terra forum by co-founder Kamil Ryszkowski asking for relief funding. He disclosed that a day before TerraUSD (UST) had lost its peg with the U.S. dollar its users’ funds totaled over 47.6 million UST from 4,878 depositors.
Currently the price of UST is trading at $0.075 according to data from CoinGecko.
A letter from class action law firm Erickson Kramer Osbourne (EKO) sent to Stablegains dated May 14 demands a record of customer accounts, marketing materials and any communications regarding UST.
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
“You owe an ‘uncompromising duty to preserve’ any evidence you know or reasonably should know will be relevant evidence in a pending lawsuit” the letter said, adding “failure to comply…may result in civil or criminal penalties”.
EKO verified the letters' authenticity to Cointelegraph and said it had opened an investigation into the Terra ecosystem collapse for possible class action.
Stablegains users were able to earn up to 15% annual percentage yield (APY) on deposited US dollars which the company apparently swapped to UST to earn yield on the Anchor Protocol.
Documentation from Stablegains’ website updated seven days ago claims that USDC
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