{"id":554115,"date":"2023-02-20T08:05:08","date_gmt":"2023-02-20T05:05:08","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/yield-platform-stablegains-sued-for-promoting-ust-as-a-safe-investment\/"},"modified":"2023-02-20T08:05:08","modified_gmt":"2023-02-20T05:05:08","slug":"yield-platform-stablegains-sued-for-promoting-ust-as-a-safe-investment","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/yield-platform-stablegains-sued-for-promoting-ust-as-a-safe-investment\/","title":{"rendered":"# Yield platform Stablegains sued for promoting UST as a &#8216;safe&#8217; investment"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2598cdd5523\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2598cdd5523\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/yield-platform-stablegains-sued-for-promoting-ust-as-a-safe-investment\/#%E2%80%9D_Yield_platform_Stablegains_sued_for_promoting_UST_as_a_%E2%80%98safe_investment_%E2%80%9C\" >&#8221; Yield platform Stablegains sued for promoting UST as a &#8216;safe&#8217; investment &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Yield_platform_Stablegains_sued_for_promoting_UST_as_a_%E2%80%98safe_investment_%E2%80%9C\"><\/span>&#8221; Yield platform Stablegains sued for promoting UST as a &#8216;safe&#8217; investment &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDIvMDY0ZTM5MzctOTA2MC00ZjhlLWJlODYtY2QxM2FkODI5YjEwLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-48054ca8>Decentralized finance yield platform Stablegains has been sued in a Californian court for allegedly misleading investors and failing to comply with securities laws.<\/p>\n<p>On Feb. 18, plaintiffs Alec and Artin Ohanian filed a complaint in the U.S. District Court for the central district of California.<\/p>\n<p>In it they<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.courtlistener.com\/docket\/66825823\/1\/ohanian-v-stablegains-inc\/\"> alleged<\/a> that Stablegains, a DeFi platform launched in August 2021, diverted all of its customer funds to the Anchor Protocol without their knowledge or consent.<\/p>\n<p>Anchor Protocol offered yields of up to 20% on the Terraform Labs algorithmic stablecoin, Terra USD (UST).<\/p>\n<blockquote><p>\u201cAs an early supporter of and investor in TFL [Terraform Labs], Stablegains is intimately familiar with UST and LUNA. In fact, Stablegains, Inc. falsely advertised UST as a safe investment.\u201d<\/p><\/blockquote>\n<p>Stablegains offered a 15% gain for its customers, pocketing the difference from yields offered by Anchor Protocol.<\/p>\n<p>The plaintiffs are also claiming that Stablegains broke federal securities laws, alleging that UST was a security:<\/p>\n<blockquote><p>\u201cStablegains plainly failed to comply with federal and state securities laws. Stablegains failed to disclose that UST is in fact a security.\u201d<\/p><\/blockquote>\n<p>The complaint added that the firm failed to register with the U.S. Securities and Exchange Commission either as a securities exchange or as a broker-dealer.<\/p>\n<p>The Ohanians stated that there were \u201cdisastrous consequences for Stablegains\u2019 customers,\u201d following the collapse of the UST ecosystem in May 2022. UST de-pegged from the dollar causing a broader run on DeFi and crypto markets in May and an eventual loss of around $18 billion from the Terra\/Luna ecosystem.<\/p>\n<p>Following the collapse, Stablegains allegedly altered its website and promotional material touting UST as \u201csafe\u201d and \u201cfiat-backed,\u201d effectively conceding that UST was none of those things, the complaint stated.<\/p>\n<p>Instead of liquidating assets and returning funds to customers, Stablegains , \u201cretained the majority of the devalued assets deposited by its users, unilaterally opting to redirect them into Terra 2.0,\u201d it added.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">We\u2019re discontinuing the Stablegains service. Please withdraw your remaining funds.<\/p>\n<p>See the anticipated timeline + a letter from the team here: <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/ebx4Z78sp1\">https:\/\/t.co\/ebx4Z78sp1<\/a><\/p>\n<p>\u2014 Stablegains (@stablegains) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/stablegains\/status\/1528114907190906881?ref_src=twsrc%5Etfw\">May 21, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>On May 22, Stablegains<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blog.stablegains.com\/were-discontinuing-the-stablegains-service-please-withdraw-your-remaining-funds-405e6bfb89c4\"> discontinued<\/a> its services, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>s, and support for Anchor Protocol, requesting that users withdraw their funds. As reported by Cointelegraph, Stablegains was hit with a similar lawsuit at the time.<\/p>\n<p><strong><em>Related:<\/em><\/strong><strong><em> <\/em><\/strong><strong><em>SEC sues Do Kwon and Terraform Labs for fraud<\/em><\/strong><\/p>\n<p>The specific amount sought in damages was not detailed, however, the plaintiffs did demand a trial.<\/p>\n<p>On Feb. 16, the SEC filed a lawsuit against Terraform Labs and its founder, Do Kwon, for allegedly \u201corchestrating a multi-billion dollar crypto asset securities fraud.\u201d<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/yield-platform-stablegains-sued-for-promoting-ust-as-a-safe-investment\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Yield platform Stablegains sued for promoting UST as a &#8216;safe&#8217; investment &#8220; Decentralized finance yield platform Stablegains has been sued in a Californian court for allegedly misleading investors and failing to comply with securities laws. On Feb. 18, plaintiffs Alec and Artin Ohanian filed a complaint in the U.S. District Court for the central&#8230;<\/p>\n","protected":false},"author":1,"featured_media":554116,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/064e3937-9060-4f8e-be86-cd13ad829b10.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74868,75493,122378,55229],"class_list":["post-554115","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-defi","tag-stablecoin","tag-terra","tag-law"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/554115","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=554115"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/554115\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/554116"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=554115"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=554115"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=554115"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}