Crypto lending platform Hodlnaut owes the Algorand Foundation $35 million in USD Coin (USDC) stablecoins. In non-profitThe organizations said they would use “all legal remedies” to recover assets.
“As part of the organization’s mission, we sometimes invest some of our surplus capital to generate profits in the development of the Algorand ecosystem,” the statement reads.
The organization noted that the debtHodlnaut accounts for less than 3% of the total assets of the Algorand Foundation. According to the statement, the situation does not entail operational risks and will not cause "liquidity problems".
Most of the debt comes from short-term deposits. The structure lost access to them when on August 8, 2022, the landing platform suspended the withdrawal of funds and operations with tokens.
On August 13, the company requested in Singaporejudicial management to stabilize the financial situation. The step was explained by the desire to avoid the forced liquidation of user assets in Bitcoin and Ethereum.
The platform also laid off 80% of its employees to cut costs.
Recall at the end of the same month Hodlnautreported a $193 million "hole" in its balance sheet. The firm placed client funds in the Anchor protocol of the Terra ecosystem. After the collapse of the latter, it suffered a loss of $189.7 million.
Terra's Death Spiral: How and Why LUNA and UST Failed
Read ForkLog bitcoin news in our Telegram - cryptocurrency news, courses and analytics.
Read this:
Cryptolending platform Hodlnaut has stopped withdrawing funds
Crypto lending platform Vauld owes $402 million to creditors
Hodlnaut applied to the Singapore court for protection from creditors
Hodlnaut reported a "hole" in the balance sheet for $193 million
Hodlnaut came under police investigation and laid off 80% of employees
Crypto Lender Hodlnaut Appeals to the Judiciary for Protection