UST provider Stablegains faces U.S. class-action lawsuit

Investors filed a lawsuit against the Stablegains platform for promoting the collapsed algorithmic stablecoin TerraUSD (UST).

Alex and Artin Oganian allege in the complaint that the now-defunct platform moved all users’ invested assets into the Anchor protocol without their knowledge.

The scheme offered a 20% yield on UST investments. Stablegains, however, paid only 15%.

The complaint alleges that, after the collapse of the algorithmic stablecoin, the platform quietly moved user funds into the second iteration of Anchor.

In May 2022, the protocol team announced that it would discontinue the service.

We’re discontinuing the Stablegains service. Please withdraw your remaining funds.

See the anticipated timeline + a letter from the team here: https://t.co/ebx4Z78sp1

— Stablegains (@stablegains) May 21, 2022

The plaintiffs did not specify the amount of restitution, proposing that a court determine it.

Earlier in October 2022, Spanish citizen Julián Moreno Beltrán and Singaporean resident Douglas Gan filed a class-action against Terraform Labs and co-founder Do Kwon for a $57 million loss.