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Yield Platform Stablegains Sued for Promoting UST: Finance Redefined

Welcome to Finance Redefined, your weekly dosage of vital decentralized Finance (DeFi) insights – a newsletter designed to bring you significant developments over the last week. Finance Redefined is your weekly dose of critical decentralized Finance (DeFi) insights.

The aftermath of the Terra implosion continues to plague the cryptocurrency industry, as evidenced by the fact that the stablecoin yield platform Stablegains is currently being sued for the damages it caused to its customers. According to the allegations made by the plaintiffs, the site secretly transferred user monies to Anchor Protocol without obtaining their knowledge or consent.

The DeFi protocol known as Platypus, which was abused for over $8 million, is currently working on a compensation scheme to retrieve part of the stolen money.

The Florida-based Cogent Bank proposes one hundred million dollars loan participation to the MakerDAO RWA Master Participation Trust.

Throughout the previous year, bridge procedures were the primary focus of exploits, resulting in the theft of cash equal to hundreds of millions of dollars. Trustless bridges have the potential to alleviate the problem by facilitating cross-chain transfers without the requirement of a centralized custodian. This might make interoperability a safer choice.

The bulls are fighting bravely against the bears in the DeFi market, which has been on a tear for about four weeks. Unfortunately, when the week ended, bears gained control of the market, resulting in a general downward trend for the market as a full and particular price decreases.

A lawsuit has been filed against the DeFi yield platform Stablegains in a California court because it allegedly misled investors and did not comply with applicable securities regulations.

Alec and Artin Ohanian, the plaintiffs in this case, filed a complaint on February 18 in the United States District Court for the Central District of California, alleging that the now-defunct DeFi platform unlawfully transferred all of its customers’ funds to the Anchor Protocol without obtaining either their knowledge or consent. As a result, anchorProtocol provided up to twenty percent returns on Terra USD, an algorithmic stablecoin developed by Terraform Labs (UST).

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.