The Hodlnaut crypto-lending platform owes Algorand Foundation $35 million in USD Coin (USDC). In a nonprofit organization заявили that it would use “all available legal remedies” to recover the assets.
“As part of carrying out the organization’s mandate, we sometimes invest a portion of our excess capital to generate profits to fund the development of the Algorand ecosystem,” the statement said.
The organization noted that Hodlnaut’s debt accounts for less than 3% of the Algorand Foundation’s total assets. According to the statement, the situation does not pose operational risks and will not give rise to “liquidity problems.”
Most of the debt is tied to short-term deposits. The platform lost access to them when on August 8, 2022 the lending platform halted withdrawals and token operations.
On August 13, the company applied for judicial management in Singapore to stabilise its financial position. The move was described as an effort to avoid forced liquidation of users’ assets in Bitcoin and Ethereum.
The platform also fired 80% of its staff to cut costs.
Earlier in the same month Hodlnaut сообщила about a $193 million balance-sheet hole. The firm had placed client funds in the Terra ecosystem’s Anchor protocol. After the collapse of the latter, it incurred losses of $189.7 million.
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