A Delaware-based investment firm is being accused of exploiting nearly 4,878 users.
The firm is being called out on Twitter for losing nearly $42 million worth of users’ funds.
A Delaware-based investment company Stablegains has been accused of allegedly exploiting its customers amidst the massive UST collapse. The company is accused of deceiving its 4878 clients that had invested their money in the firm, in hopes of earning 15% yields on their investment.
Stablegains Attracts Trouble
Stablegains, a Delaware-based investment company is in deep trouble considering that the firm has been accused of deceiving its customers into investing USD or USDC by offering them a 15% yield. The company is being called out on social media for its deceptive practices, with accusations outlining that the firm had lost nearly $42 million worth of investors’ money.
Upon further investigation, a Twitter user brought forth interesting insights accusing the firm of investing the client’s funds into Anchor protocol without their knowledge. The user further outlined details, adding that Stablegains collected funds in USD and USDC from its customers, by promising them a 15% yield on their invested amount.
The company has also been accused of earning 4% profits amidst all this, attracting more heat from the investors. According to several available sources on Twitter, nearly 4,878 users have collectively lost a staggering $42 million worth of funds in the process.
The firm is also accused of changing its website and landing page formats that no longer promise attractive yields to the investors as well as making changes to the denominations signaling discernible online malfeasance.
The Firm Responds
Amidst the rising accusations against Stablegains, the firm has responded via Twitter, claiming that they have not benefited or profited from the current situation. The company has also been tweeting to Terraform Labs founder Do Kwon, to get their wallet whitelisted for reimbursement purposes.