Stablegains faces lawsuit after losing $44 million on UST
Yield generation app Stablegains could be facing a class-action lawsuit after the company lost more than $44 million of customers’ funds. Stablegains took customers’ U.S. dollar deposits, converted them to UST, and deposited them into Anchor Protocol before the algorithmic stablecoin lost its peg and crashed the Terra ecosystem.
Class action law firm Erickson Kramer Osbourne sent a letter to Stablegains on May 14 demanding records of customers’ accounts, the firm’s marketing and advertising materials, and communications records regarding the UST stablecoin.