zlacker

>>mkeete+(OP)
If you are in the U.S. and lost money, please write to your state's Attorney General [1].

The company is Stablegains, Inc. and the people to name are Kamil Ryszkowski and Emil Rasmessen, co-founders and, I think, Board members. Copy Ken Paxton, Office of the Attorney General, P. O. Box 12548, Austin, Texas as well as his challenger George P. Bush at P. O. Box 26677, also in Austin. (Stablegains and its founders are in Texas. They are spearheading the criminal complaint.)

[1] https://www.usa.gov/state-attorney-general

>>JumpCr+hc
For what it's worth, they are also a YC backed company.

>>giantg+li
> For what it's worth, they are also a YC backed company

Severely disappointing. I respect PG too much to believe he would knowingly condone this. The partner who did this didn't understand what they were investing in or should be decoupled with haste.

At the very least, the Alaska RMB, U of M Endowment, Bloomberg's family office and SMC should be asking why their capital is backing what should have been clear as day ex ante a fraud. Anyone living in Alaska, going to or an alumni of U of M or Stanford, or working for Bloomberg should be asking the same question.

>>JumpCr+jj
What does Paul Graham have to do with any of this? He hasn't been operationally involved with YC for years, lots of them, so far as I know. Also: YC invests in companies that are 2-3 people and a vague idea; that's the whole concept. Why wouldn't YC end up backing a shady cryptocurrency company? I read all of your comments and guess we're on the same page about "crypto" and wish YC was staying the hell away from it --- but if they're going to invest in "crypto" startups, they're going to get their share of companies like this.

>>tptace+UQ
If you believe this company is an outright fraud (I don’t have an opinion) “shrug its crypto” is a horrendous defense for the funds backing it.

At a bare minimum they should be doing due diligence for their own investors to prevent losses if not the higher standard of being a good citizen and shutting down the fraud.

We would not think it’s ok for a fund backing pharma startups to give cash to Avon Barksdale…

>>kasey_+Jv1
I think I'm saying that YC by design funds companies at a point where it's too early to reliably determine whether they're an outright fraud. And YC can't shut down anything; they invest relatively little money and take zero control over their portfolio companies. The best they can do is performatively kick companies out of the program, so they can't access Bookface or whatever.