Coinflex, BlockFi, Celsius and Hodlnaut are among the cryptocurrency lenders forced to file for bankruptcy following Terra’s collapse. Hard to swallow, this pill represents the equivalent of 40 billion dollars in losses. Regarding Hodlnaut, the descent into hell began with a suspension of crypto deposits and withdrawals in August. A few months later, the Singaporean start-up applied to the High Court of Singapore for protection against its creditors. According to the latest news, Hodlnaut is posting astronomical losses caused by an error in estimating the risks associated with TerraUSD.
Hodlnaut loses $190 million because of Terra
Today, Bloomberg covered the progress of an interim report from court managers working on Hodlnaut’s case. Attention, Hodlnaut has nothing to do with Hodlonaut, the man who had just beaten Faketoshi before the Norwegian court. Said document states that the based cryptocurrency lender lost $189.7 million after Terra fell.
” It appears that administrators [d’Hodlnaut] had minimized the extent of the group’s exposure to Terra/Luna both during the period before and after the collapse of Terra/Luna in May 2022 “, they specified in the report.
Less Cooperative Leaders at Crypto Borrower
In addition to this heavy loss, the managers appointed by the Singapore court mentioned difficulties that would handicap their mission. They feel that the barons of Hodlnaut are not cooperative enough. They deprive them of access to documents of great importance. In fact, since their appointment, more than 1,000 files have disappeared from the crypto credit company’s Google workspace.
This is enough to fuel speculation in the crypto community, which is already aware of the withdrawals of around $550,000 made by Hodlnaut employees. This was happening well before the freezing of investors’ assets.
” Among other reasons, the company’s accounting and financial records were not properly maintained. “, underlines the famous report.
The fall of Terra was not without consequences. Whether for investors, Ithe donors (part of which has just taken Do Kwon to court) or even Icrypto funds like Three Arrows Capital, Celsius, Coinflex, and Hodlnaut. The latter can boast of still having a few million dollars in DeFi platforms like Aave, Convex and Compound. However, $190 million gone up in smoke, in a bear market context, is not going to help him.
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