Re:Stablegains (YC W22) customers were defrauded out of $40M
by davidgerard on Friday June 10, 2022 @03:12AM
(#31691051)
yes, that's the way the scam works.
* all the laws are to protect investors from issuers
* splash around money to incentivise securities fraud
* buy a pile of tokens
* if the SEC doesn't bust the issuer, the VC wins big
* if the SEC does bust the issuer, the VC gets their money back and doesn't lose
it also realises liquidity much quicker than the long and tedious process of backing a tech company that does things
So did YC buy the tokens, or buy equity in the company? If the latter, then they're part-owners and may claim to have been completely hands-off, but might need to show it.
* all the laws are to protect investors from issuers
* splash around money to incentivise securities fraud
* buy a pile of tokens
* if the SEC doesn't bust the issuer, the VC wins big
* if the SEC does bust the issuer, the VC gets their money back and doesn't lose
it also realises liquidity much quicker than the long and tedious process of backing a tech company that does things
So did YC buy the tokens, or buy equity in the company? If the latter, then they're part-owners and may claim to have been completely hands-off, but might need to show it.