Hodlnaut reports a $193 million “hole” in balance sheet
- August 22, 2022
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The Block writes that as of August 8, 2022, the Hodlnaut crypto lending platform has a capital shortfall of $193 million, according to documents filed with a bankruptcy
The Block writes that as of August 8, 2022, the Hodlnaut crypto lending platform has a capital shortfall of $193 million, according to documents filed with a bankruptcy court in Singapore.
At the reporting date, the company’s liabilities were estimated at 391 million. SGD (~$281 million), assets – SGD 122 million (~$88 million). In other words, for every $1 of debt, Hodlnaut could only repay 31 cents.
The company’s creditors are 17,513 people. peak in May AUM companies reached 750 million dollars.
The platform converted $317 million to TerraUSD (UST) for high yields via the Anchor protocol, resulting in $189.7 million in losses.
In a new filing from Hodlnaut, they admit that they acquired most of their AUM at UST through their HK DeFi subsidiary and lost $190 million in the Terra crash. Despite this, they continued to tell customers that they had zero anchor exposure. Send JT and CT to jail. https://t.co/6knPSgrV8r pic.twitter.com/e3wt7VgfY8
— FatMan (@FatManTerra) 19 August 2022
Between July 14 and 15, Hodlnaut experienced a “larger-than-normal client fund outflow” of $150 million. The platform’s Bitcoin and Ethereum reserves were negatively revalued due to worsening market conditions.
The company is considering a “limited exit” option for users who agree to pay back 25 cents for every $1 commitment. Hodlnaut offered such an option, especially FTX.
“It will probably be a better option than liquidation. The latter will take longer and will likely result in a smaller refund given the fees required for the procedure and the current asset-liability ratio.” says document.
Hodlnaut hopes to restructure and return to profitability, given its positive history of activity from its founding in 2019 to the collapse of Terra.
As a reminder, on August 8, the platform suspended the withdrawal, exchange and deposit of tokens.
On August 16, Hodlnaut applied to the court for protection from creditors.
Previously, other Singaporean firms Vauld and Zipmex have made a similar attempt.
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I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
