Stablegains (YC W22) customers were defrauded out of $40M

  • A few months ago I found Stablegains. I asked myself, “how is this possible?”, “why is this backed by YC?”.

    Started digging around. Read their TOS and Privacy Policy. Analyzed their relationship with the Anchor protocol.

    Then I found screenshots of the founder’s notebooks and code. Showing deposit amounts…

    At that point I knew this wasn’t about actually delivering value to customers if they were so sloppy with their security.

  • Previously discussed [0] Seashell.com is another VC-funded startup that seems shady and is building an investment app advertising high yields sourced from DeFi. Took investment from Do Kwon and had a tweet from Terra [1].

    [0] https://news.ycombinator.com/item?id=30375309

    [1] https://twitter.com/terra_money/status/1481701273070047232

  • The irony of a company called "Stablegains" providing investments for a possibly incredibly volatile resource is astounding. Hope YC puts out a statement on this.

  • Previous discussion: https://news.ycombinator.com/item?id=31431224

  • I thought the company was shut down. If the company was shut down how can it be sued?