Hodlnaut losses from Terra collapse estimated at $190 million

The losses of the crypto-lending platform Hodlnaut as a result of the Terra ecosystem collapse amounted to about $190 million. This follows from a Singapore bankruptcy court filing, according to Bloomberg.

The document states that the firm did not disclose the true scale of the risks associated with its UST exposure, both before and after the events.

In a letter dated July 21, management changed its position, informing Singapore’s authorities about investments in an algorithmic stablecoin that were deployed in the Anchor protocol.

The court’s report says that management deleted more than 1,000 documents in Google Workspace that could help restore the full picture of what happened.

Trustees did not have access to “key documents” that relate to the nature of the debt of the Hong Kong unit in the amount of 82.43 million SGD (~$58.3 million) to the parent entity.

It was through this business unit that investments in DeFi protocols were made.

The document states that before the suspension of platform operations on 8 August 2022, some of its staff withdrew about 776,300 SGD (~$549,000).

In August, Hodlnaut requested judicial management in Singapore to stabilise its finances. The petition was subsequently granted.

The platform also fired 80% of its staff to cut costs.

In September it emerged that Hodlnaut owed the Algorand Foundation $35 million.

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