Blockwater Technologies defaults on $2.97 million DeFi loan

South Korea-based cryptocurrency-focused investment firm Blockwater Technologies не выполнила its obligations on a loan obtained via the DeFi protocol TrueFi, worth $2.97 million in BUSD.

In August, the parties restructured the loan, extending the repayment period. Prior to that, the company, in eight transactions, transferred about $654,000 toward repayment. The loan amount stood at $3.42 million in BUSD.

“A potential lawsuit will yield a better outcome for the stakeholders.”, according to a statement from the platform’s representatives.

The Blockwater Technologies situation did not affect other credit pools in the protocol, they added. The troubled debt accounts for about 2% of the total portfolio.

According to TrueFi, since inception the platform has issued more than $1.7 billion in unsecured loans and collected from borrowers about $1.5 billion across 136 loans, including $34.34 million in interest.

As of writing, the portfolio of issued loans stands at about $140 million across 10 deals. The company said they placed high value on their quality and noted sustained demand from borrowers and support from major lenders.

TrueFi created TrueFi SAFU — a structure led by DAO, from which reimbursement is paid in the event of defaults.

As reported, the Hodlnaut crypto-lending platform owed the Algorand Foundation $35 million in USDC. In the nonprofit organization stated that it is using “all available legal remedies” to recover assets. 

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