A looming default on a tokenized loan through blockchain-based credit platform Centrifuge has triggered concerns for MakerDAO, whose substantial $1.84 million investment hangs in the balance.
ControlFreight, the beleaguered credit pool underwriter, sounded the alarm as it revealed that the largest borrower within the $2.7 million pool faces the imminent specter of liquidation. This unsettling predicament stems from an ongoing legal dispute that has cast a shadow over the borrower’s capacity to meet its obligations.
ControlFreight’s recent post detailed the grave situation, stating, “There is a significant risk of loss of all or part of the funds owed to us by Hanhwa AUS Pty Ltd and Hanwha New Zealand Pty Ltd.” This heightened risk stems from Australia’s Supreme Court intervention, appointing a liquidator to oversee the winding up of the companies’ activities and freezing payments to the debtor. This legal development has left ControlFreight with little recourse.
Compounding the crisis between Centrifuge and MakerDAO, ControlFreight had previously minted $1.84 million in DAI from MakerDAO. This financial injection aimed to underpin trade finance transactions and streamline freight forwarding invoices. However, the unforeseen chain of events, propelled by the legal imbroglio, has left ControlFreight in a precarious position, potentially jeopardizing MakerDAO’s significant investment.
As the situation unfolds, industry stakeholders are closely watching for updates. This predicament serves as a stark reminder of the multifaceted risks within the cryptocurrency and blockchain sectors.
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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