Hodlnaut uncovers a $193 million financial loop

Troubled crypto lender Hodlnaut has reported a $193 million financial hitch.

The financial shortfall was uncovered in a court affidavit filed earlier this month.

The affidavit, which supports Hodlnaut’s application to be placed under judicial management, was filed August 12.

The affidavit lays out exactly what led the Hodlnaut’s decision to halt withdrawals on August 8.

On August 19, reports emerged that Hodlnaut is facing police proceedings in Singapore.

The crypto lender has laid off 80% of its staff to conserve cash.

Hodlnaut has an outstanding liability of SGD 391 million (around $281 million), compared with assets of SGD 122 million ($88 million), per the affidavit.

That results in a shortfall of around $193 million.

The firm filed for creditor protection in Singapore on August 16, seeking time to resolve its financial issues.

The affidavit shows that Hodlnaut invested $317 million in UST, Terra’s failed stablecoin.

Terra’s stablecoin UST woes sharply inflicted losses of $189.7 million on Hodlnaut, per the affidavit.

Then, between June 14 and July 15, Holdnaut suffered “greater than usual net outflows” of around $150 million as panicked customers sought to recover their funds, according to the document.

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