Hodlnaut Lost Nearly $190 Million

• According to a judicial report, the company downplayed its exposure to Terra/Luna 
• LUNA Price at the time of writing – $2.42
• Hodlnaut was one of the platforms harmed by the crypto crash in 2022

Hodlnaut, a troubled cryptocurrency lender, downplayed its exposure to the destroyed digital-token ecosystem that was created by fugitive Do Kwon, but the ecosystem’s collapse resulted in a loss of nearly $190 million.

A Bloomberg News-received interim judicial managers’ report includes the loss as one of its findings.Since a Singapore court granted Hodlnaut protection from creditors in August to devise a recovery strategy, this is the first such report.

Luna suffered a $60 billion wipeout in May

According to the report, “it appears that the directors had downplayed the extent of the group’s 

exposure to Terra/Luna both during and following the collapse of Terra/Luna in May 2022.”

In May, Kwon’s TerraUSD algorithmic stablecoin and its sister token Luna lost $60 billion as investors lost faith in the project, escalating the crypto meltdown of this year.

When it sold the stablecoin, Hodlnaut’s Hong Kong arm lost nearly $190 million because the coin’s claimed dollar peg broke.

According to the report, in a letter dated July 21, the directors of Hodlnaut “made an about-turn” regarding the impact and informed a Singapore police department that digital assets had been converted into TerraUSD.

According to the report, a significant amount of the latter was loaned out through the Anchor Protocol, a decentralized finance platform built on the Terra blockchain.

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Deleted Documents 

An automated response stating that the company would respond as soon as possible was sent in response to an email that was sent to Hodlnaut for comment.

In August, Hodlnaut, which operates from Singapore and Hong Kong, stopped making withdrawals.Due to speculative fervor and tightening monetary policy, digital asset prices fell, causing problems for a number of crypto platforms worldwide.

More than 1,000 deleted documents from Hodlnaut’s Google workspace could have shed light on the business, according to the judicial report.

The judicial managers have not been able to obtain a number of “key documents” regarding Hodlnaut’s Hong Kong arm, which owes Hodlnaut Pte in Singapore S$82.43 million (58.3 million).

According to the report, some employees appeared to have withdrawn approximately S$776,292 between July and the end of withdrawals in August.It added that the Hong Kong division made the majority of the company’s investments in DeFi.

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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