According to a report published by a popular newsletter Finance Redefined, the yield platform Stablegains has been sued for promoting UST. Defi, also known as decentralised finance, saw another exploit this week on the Platypus protocol resulting in a loss of over 8 million USD. Over the last couple of months, multiple scams have been seen in the crypto industry, which has been a big reason for the downfall in the market.
Backlash from Terra’s downfall still haunts the crypto industry
Finance Redefined, a popular newsletter which offers Defi market insights, recently reported that the backlash from the terra’s downfall is still haunting the crypto industries and companies, with the now-shuttered stablecoin yield platform Stablegains being sued for tragic customer losses. The plaintiffs accused the platform of funnelling customer funds to Anchor Protocol without user consent or informing them.
Platypus, the Defi protocol, which was exploited for over 8 million USD, is working on a compensation plan to recover some of the funds. Florida’s Cogent Bank proposes a 100 million USD participation in loans to MakerDAO’s RWA Master Participation Trust.
Reports also indicated that the bridge protocols were the primary targets of the exploits last year, amounting to more than hundreds of millions of dollar worth of stolen funds. Trustless bridges can mitigate the issue, enabling cross-chain transfer without needing any decentralised custodians, potentially making it a safer option for interoperability.
After four weeks of a bull run, the decentralised finance market is fighting a brave battle against the bears. There were minor price drops, and the market’s overall sight declined as bears had the upper hand towards the end of the week.
Stabelgains sued for promoting UST as a safe investment
As you know, Finance Redefined reported that the yield platform Stablegains has been sued for promoting UST. On Feb 18, the plaintiffs, Alec and Artin Ohanian, filed a complaint in the US District Court for the Central District of California, alleging that the shuttered DeFi platform diverted all its customer funds to the Anchor Protocol without their consent. Anchor Protocol offered Stablegains upto 20 per cent yields on Terra USD(UST).
What are your thoughts on the lawsuit filed against Stablegains for prompting UST as a safe investment option? Can the DeFi market soon again start a bullish run? Let us know in the comments below. And, if you found our content informative, share it with your family and friends.
Also Read: Bitcoin 2024 halving is going be very crucial.