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The capital deficit of the crypto-landing platform Hodlnaut as of August 8, 2022 amounted to $ 193 million, this follows from the documents for the bankruptcy court in Singapore, writes The Block.
As of the reporting date, the company’s liabilities were estimated at 391 million SGD (~$281 million), assets — 122 million SGD (~$88 million). In other words, for every $1 of debt, Hodlnaut could only repay 31 cents.
The company’s creditors are 17,513 individuals. At its peak in May AUM the firm reached $750 million.
The platform converted $317 million into TerraUSD (UST) to generate high returns through the Anchor protocol, resulting in a loss of $189.7 million.
In a new filing from Hodlnaut, they admit to have had most of their AUM in UST through their HK DeFi spin-off entity, and they lost a whopping $190m in the Terra crash. Despite this, they continued to tell customers they had zero Anchor exposure. Send JT and CT to prison. https://t.co/6knPSgrV8r pic.twitter.com/e3wt7VgfY8
— FatMan (@FatManTerra) August 19, 2022
Between July 14 and July 15, Hodlnaut faced a “greater-than-usual outflow of client funds” of $ 150 million.
The company is considering the option of “limited exit” for users if they agree to a refund of 25 cents for every $ 1 of obligations. Hodlnaut proposed such an option, in particular FTX.
“It’s probably going to be a better option than liquidation. The latter will take a longer period of time and may result in a smaller refund, given the fees required for the procedure and the current asset-to-liability ratio.” — the document says.
Hodlnaut expects to go through a reorganization and return to profitability given a positive operating history from its founding in 2019 to the collapse of Terra.
Recall, on August 8, the platform suspended withdrawals, swaps and token deposits.
On August 16, Hodlnaut appealed to the court for protection from creditors.
Earlier, a similar initiative was made by other Singaporean firms – Vauld and Zipmex.
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