The troubled crypto lender Hodlnaut shared another update after the company froze withdrawals on August 8, and then revealed the company is seeking judicial management in order to rehabilitate the startup. The latest update shows that Hodlnaut experienced a shortfall of around $193 million and this past week the company has laid off roughly 80% of the startup’s workforce.
Crypto Lender Says ‘Financial Circumstances Are a Result of Losses Suffered by Hodlnaut’s Hong Kong Subsidiary During the Terrausd Crash’
It seems that Hodlnaut lost close to $200 million and the company is now looking for assistance and protection from the Singapore High Court. In a judicial management process update published on August 19, Hodlnaut says the company’s Hong Kong subsidiary suffered from the terrausd (UST) crash. At the time, Hodlnaut claims the terrausd (UST) crash sparked “unusually high volumes of withdrawals.”
After the update was published, the whistleblower Fatman explained that the court affidavit that shows the $193 million shortfall also indicates contradictory statements Hodlnaut published after the Terra crash. “In a new filing from Hodlnaut, they admit to [having] had most of their [assets under management] in UST through their HK defi spin-off entity, and they lost a whopping $190m in the Terra crash,” Fatman said. The whistleblower added:
Despite this, they continued to tell customers they had zero Anchor exposure.
Hodlnaut Hopes the Company’s Bitcoin and Ethereum Will Not Get Liquidated, Lender Has Not Secured Any Creditors
Hodlnaut hopes the judicial management option will help customers the most and it would “avoid liquidation of Hodlnaut’s holdings of BTC and ETH at today’s depressed prices.” If the company’s holdings are liquidated and sold, “this would mean that all users (whether you have deposited
