YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers

riffraff wrote: post #4

I imagine (and hope) those 5k where mostly crypto bros who knew what they were getting into. Who else expects 15% returns from a "safe" investment?

YCombinator's board?

https://www.ycombinator.com/companies/stablegains

Re: YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers

#8

Post by devoutsalsa » Thu, May 19, 2022, 6:47 AM UTC

riffraff wrote: post #4

I imagine (and hope) those 5k where mostly crypto bros who knew what they were getting into. Who else expects 15% returns from a "safe" investment?

I didn't invest because it was only 15% gains. Sad, but true. I actually read them their material & saw it was based on Anchor Protocol. When I saw that it was based on UST, and I couldn't figure how UST was backed by anything I understood, I opted out. One of the few times in crypto where I felt "do you won research" paid off for me.

Re: YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers

#9

Post by devoutsalsa » Thu, May 19, 2022, 6:48 AM UTC

dmitrygr wrote: post #5

YC invested in what was clearly an outright fraud? Or did they pivot do hard that nobody noticed?

A poor decision does not equal fraud.

Re: YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers

#10

Post by dmitrygr » Thu, May 19, 2022, 6:50 AM UTC

devoutsalsa wrote: post #9

dmitrygr wrote: post #5

YC invested in what was clearly an outright fraud? Or did they pivot do hard that nobody noticed?

A poor decision does not equal fraud.

Promising a guaranteed 15% return is fraud. There is no place in reality where you can * guarantee * that kind of return.