Catheon Gaming Loses $20 Million in May 2022 $USTC Incident

Catheon Gaming lost $20 million in the May 2022 $USTC incident, according to ZachXBT. It is worth noting that the project did not choose to notify the community after the incident. Chat transcripts show that they think retail doesn’t need to know and only large investors do. It also contradicts an internal email sent out about major layoffs.

Update

On May 25th, 2023, TokenInsight received an email from the Catheon Gaming team, claiming that the report above quoted from ZachXBT was "fraught with a myriad of false and defamatory statements", including: irresponsible accusations that Catheon ill-advisedly invested a portion of treasury funds in Terra's USD Anchor protocol; allegations that Catheon selectively informed institutional investors of the loss, leaving retail investors in the dark; implying financial mismanagement and untruthfully suggesting a discrepancy between Catheon's solvency and internal cost-cutting measures; claiming lack of transparency and neglect for token purchaser’s interests by not sharing confidential information about Catheon's investments; and others.