Crypto crash led to vanished savings, shattered dreams

Keith Baldwin, a 44-year-old surgeon who lives outside New Bedford, Mass., saved $177,000 during the past decade. Last year he took his savings and bought USD Coin, putting it in a crypto account that paid a 9% annual yield.

Advertisement

In April, he moved it into a pseudo-savings account powered by TerraUSD that offered 15%. More than 90% of his savings vanished in a few days when TerraUSD lost its peg to the dollar. Dr. Baldwin said he didn’t know that Stablegains, the startup that managed the account, was converting his USD Coin holdings into TerraUSD. (USD Coin has kept its $1 peg.)

Dr. Baldwin doesn’t consider himself a crypto enthusiast. He had hoped to spend the money on a house. Now he has been cutting back on expenses so he can still save for his children’s education. “I don’t want to punish our kids for the mistake I made,” he said…

When Dr. Baldwin learned that TerraUSD’s troubles were threatening his nest egg, he scrambled to withdraw his funds from Stablegains. Hours ticked by as the site processed the transfer. By the time they landed at Dr. Baldwin’s newly created account at the Kraken crypto exchange, the coin was trading at just 14 cents.

Join the conversation as a VIP Member

Trending on HotAir Videos

Sponsored

Advertisement
Advertisement
Advertisement