Hodlnaut Struggling Crypto Lender Is A $35 Million Risk For Algorand Foundation
The Algorand Foundation said that it has a $35 million USDC exposure to Hodlnaut, a struggling cryptocurrency lender with operations in Singapore that stopped accepting customer withdrawals last month.
According to the company, that amount is less than 3% of the Algorand Foundation’s assets, and it doesn’t expect any operational or financial problems as a result of the exposure.
“As part of the Foundation’s mission, from time to time, we invest a portion of our surplus treasury capital to generate yield for the purpose of Algorand ecosystem development, and these funds were invested for that purpose” the foundation said on Friday.
On August 8 due to liquidity issues, Hodlnaut (HN) stopped accepting client withdrawals. The Terra ecosystem breakdown resulted in significant losses for the company, according to affidavits cited. To transfer on high payouts to its clients, Hodlnaut has deposited over $317 million in terraUSD (UST), the bankrupt stablecoin, in Anchor Protocol on Terra. The declaration claims that in May, Terra’s stablecoin UST abruptly de-pegged from the dollar, causing Hodlnaut losses of $189.7 million.
Algorand Foundation using all available legal options to recover Hodlnaut’s assets
The Singapore High Court nominated Angela Ee and Aaron Loh of EY Corporate Advisors on August 29 to serve as the temporary judicial managers of Hodlnaut, according to the foundation. They were Algorand’s nominations.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Hodlnaut Struggling Crypto Lender Is A $35 Million Risk For Algorand Foundation
The Algorand Foundation said that it has a $35 million USDC exposure to Hodlnaut, a struggling cryptocurrency lender with operations in Singapore that stopped accepting customer withdrawals last month.
According to the company, that amount is less than 3% of the Algorand Foundation’s assets, and it doesn’t expect any operational or financial problems as a result of the exposure.
“As part of the Foundation’s mission, from time to time, we invest a portion of our surplus treasury capital to generate yield for the purpose of Algorand ecosystem development, and these funds were invested for that purpose” the foundation said on Friday.
On August 8 due to liquidity issues, Hodlnaut (HN) stopped accepting client withdrawals. The Terra ecosystem breakdown resulted in significant losses for the company, according to affidavits cited. To transfer on high payouts to its clients, Hodlnaut has deposited over $317 million in terraUSD (UST), the bankrupt stablecoin, in Anchor Protocol on Terra. The declaration claims that in May, Terra’s stablecoin UST abruptly de-pegged from the dollar, causing Hodlnaut losses of $189.7 million.
Algorand Foundation using all available legal options to recover Hodlnaut’s assets
The Singapore High Court nominated Angela Ee and Aaron Loh of EY Corporate Advisors on August 29 to serve as the temporary judicial managers of Hodlnaut, according to the foundation. They were Algorand’s nominations.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Annie
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