Case summary
What happened
Stablegains marketed stablecoin yield to customers while relying materially on TerraUSD and Anchor-related yield. When UST lost its dollar peg in May 2022, the underlying strategy collapsed and the customer-facing yield service ceased to function as advertised. The aftermath became a dispute and recovery case rather than a conventional court-supervised platform bankruptcy.
Customer result
Customer outcome
Unknown
Stage 2 review adds the February 2023 U.S. customer lawsuit to the post-collapse lifecycle but does not convert complaint allegations into adjudicated findings. The reviewed public material does not establish a Stablegains-wide settlement, completed customer distribution, or uniform recovery percentage. Terra/Terraform litigation and claimant recoveries are not treated as Stablegains-specific recovery, and proposed community relief for pooled Stablegains users is not treated as an actual distribution. `unknown` is therefore retained fail-close.
- Estimated recovery
- unknown; dependent on residual asset treatment and individual legal claims
- Repayment started
- —
- Repayment completed
- —
- Confidence
- Medium
Asset treatment
Terms risk
Unknown
Keep terms status unknown until a court decision, settlement document, or authoritative product-specific legal analysis establishes customer ownership and claim treatment.
- Affected product
- Stablegains stablecoin yield account
- Confidence
- Medium
Stablegains customer asset treatment remains legally contested and product-specific. Public material supports a platform-managed conversion and yield strategy, but does not justify one universal ownership classification for every customer claim.
Known unknowns
Uncertainty
The launch year is approximate. Public materials clearly establish Stablegains' reliance on TerraUSD-related yield and the May 2022 failure, but product-specific ownership treatment and universal customer recovery remain contested and should not be overstated.
Chronology
Historical record
Stablegains stablecoin yield service becomes available
Stablegains offered a centralized stablecoin-yield product that accepted customer deposits and generated returns through TerraUSD and Anchor-related exposure.
The exact launch date remains approximate and should be replaced by a stronger archived first-party launch source.
TerraUSD depeg undermines Stablegains yield strategy
TerraUSD began losing its intended dollar peg, directly impairing the UST- and Anchor-linked strategy used by Stablegains.
The broader TerraUSD collapse unfolded over several days; this date marks the start of the decisive depeg period.
Stablegains yield service becomes economically nonfunctional
After TerraUSD and LUNA collapsed, Stablegains could no longer operate the stablecoin-yield product on the basis presented to customers.
This is an operational end classification for the customer-facing yield service, not a finding that Stablegains entered a formal bankruptcy proceeding on this date.
Stablegains customers file U.S. securities-related lawsuit
Alec and Artin Ohanian filed a federal lawsuit against Stablegains Inc. in the Central District of California alleging that the platform misled customers about its UST and Anchor exposure and asserting securities-related claims.
This records the filing of allegations, not an adjudicated finding, settlement, or customer-recovery result.
Source record
Evidence dossier
Filter by claim, reliability, source type, and whether evidence is linked to a specific event.
Entity
1 sourcesStablegains website archive captures
Internet Archive
Archived customer-facing pages support review of Stablegains branding, product positioning, and stablecoin-yield offering.
Event
3 sourcesAnatomy of a Stablecoin's Failure: the Terra-Luna case
arXiv · 2022-07-28
Research source describing the TerraUSD/LUNA failure and Anchor dependency that destroyed the underlying yield strategy.
Alec Ohanian et al v. Stablegains, Inc. et al
Justia Dockets & Filings · 2023-02-18
Docket metadata confirms the federal securities/commodities case filing against Stablegains Inc. in the Central District of California. CYA uses it only to establish the filing event, not the truth of the complaint's allegations or any final disposition.
Yield platform Stablegains sued for promoting UST as a safe investment
Cointelegraph · 2023-02-20
Contemporaneous reporting identifies the Ohanian complaint and summarizes its allegations. The allegations are not converted into adjudicated findings.
failure reason
1 sourcesSEC charges Terraform Labs and Do Kwon with fraud
U.S. Securities and Exchange Commission · 2023-02-16
Primary regulatory source for the TerraUSD collapse and the yield-bearing UST/Anchor context underlying Stablegains' strategy.
status
1 sourcesStablegains post-collapse website captures
Internet Archive
Post-collapse captures support the operational-end and customer-dispute period without asserting a formal bankruptcy proceeding.
terms risk
1 sourcesStablegains terms and product disclosures archive
Internet Archive
Archived terms are retained for product-structure and customer-asset-treatment review; exact legal interpretation remains conservative.
No evidence records match the current filters.
Comparative records