Crypto lending platform Hodlnaut owes the Algorand Foundation $35 million in USD Coin (USDC) stablecoins. The nonprofit said it used “all legal means” to recover assets.

“As part of the organization’s mission, we sometimes invest some of our excess capital to generate profits in the development of the Algorand ecosystem,” the statement says.

The organization noted that Hodlnaut’s debt is less than 3% of the Algorand Foundation’s total assets. According to the statement, the situation does not involve operational risks and will not lead to “liquidity problems”.

Most of the debt is in short-term deposits. On August 8, 2022, the structure lost access to them when the landing platform suspended the withdrawal of funds and transactions with tokens.

On August 13, the company requested a judicial office in Singapore to stabilize its financial situation. The move was explained by the desire of users to avoid forced liquidation of their holdings in bitcoin and Ethereum.

The platform also laid off 80% of its employees to cut costs.

Recall that at the end of the same month, Hodlnaut reported a $193 million “hole” in its balance sheet. The firm placed client funds in the Terra ecosystem’s Anchor protocol. After the collapse of the latter, it suffered a loss of $189.7 million.

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