Web3 is Going Just Great

The de-peg occurred amid a "liquidity crunch" as holders rushed to redeem their USDR for the DAI stablecoin, draining the project of its DAI reserves. The team behind the project, TangibleDAO, issued a statement stating that "the real estate and digital assets backing USDR still exist and will be used to support redemptions." However, despite their insistence that the problem is just a liquidity issue rather than a solvency one, a dashboard on their own website showed that the stablecoin isn't fully backed and has a deficit of around $3.4 million.

In a related incident, a trader trying to swap their $131,350 in USDR for the USDC stablecoin lost every penny of it when their transaction was arbitraged by a MEV bot.

The FTC lawsuit focuses on Voyager's claims suggesting to customers that accounts with the lender were FDIC insured. That complaint also names Voyager as a defendant. Voyager settled with the FTC, agreeing to pay a $1.65 billion judgment that will be suspended until customers are repaid.

The team behind the FinSoul project was reportedly the same as the group who pulled off the much larger $31 million Fintoch exit scam in May. They used similar strategies, including using paid actors to pose as their executive team, to push the FinSoul scam.

They may now be discovering this was a bad idea, as an impending default on a $20 million loan from February 2022 threatens the platform with a possible $7 million loss.

The loan went to a fintech credit fund called Stratos, who in turn used the money for a risky real estate technology investment (now written down to zero), crypto investments of their own (not disclosed to Goldfinch, and sold at a "near full loss"), and other investments. Stratos is, awkwardly, an investor in Goldfinch, and Stratos' founder was an advisor.

This is not the first loan gone bad for Goldfinch, who suffered a loss when an African motorcycle taxi financing company used a $5 million loan to try to plug the hole in the finances of a sister company.

A commenter on the disclosure about the distressed loan wrote, "This is the second occurrence of a lack of transparency from a borrower or a lack of auditing capability from Goldfinch. We can all appreciate that Warbler Labs will backstop the loss, but it is increasingly worrying to discover a complete lack of control from the loan underwriter, especially in the context of Stratos being an equity investor in Goldfinch."