Hodlnaut crypto lender suffered significant losses following the Terra Blockchain collapse in May, according to reports. The report notes that Hodlnaut downplayed the company’s exposure to the Terra ecosystem and allegedly lost $190 million from the incident.
Hodlnaut Says Terra Exposure Was Downplayed by Reporter Following Collapse
More than 1,000 deleted documents from the crypto lender Hodlnaut’s Google workspace have shown discrepancies, according to a judicial report discovered by Bloomberg on Oct. 31. This judicial document confirms what was published in court documents at August’s end that Hodlnaut had suffered significant financial losses due to the Terra collapse.
Bloomberg’s Suvashree Ghosh and Sidhartha Shukla explain that the judicial report shows the crypto lender “suffered a near $190 million loss from the wipeout.” The newly discovered deleted documents show Hodlnaut executives allegedly downplayed the exposure to Terra. Hodlnaut, tweetedOn May 11, it became clear that the stablecoin terrausd was still not fully in-line with its current depegged price (UST).
“Hodlnaut is NOT all-in on UST as one particular rumour on Reddit has mentioned. This is a false claim,” the crypto lender tweeted during the collapse. “Yields on USDC/USDT/DAI are generated in-kind and paid by our loans to institutions and a small amount to defi protocols like Compound Finance,” Hodlnaut insisted.
“It appears that the directors had downplayed the extent of the group’s exposure to Terra/Luna both during the period leading up to and following the Terra/Luna collapse in May 2022,” the judicial report discovered by Bloomberg said.
“In a letter dated July 21, Hodlnaut’s directors ‘made an about-turn’ about the impact and informed a Singapore police department that digital assets had been converted to [terrausd], according to the report,” Ghosh and Shukla wrote.
According to the report, much of it was loaned out via the Anchor Protocol. It is a Terra blockchain-based decentralized finance platform.
It’s unclear how Singapore, where Hodlnaut is based, will deal with the embattled crypto lender, but regulations in the country have been ramping up. Singapore police reported that they had received 631 reports of crypto fraud this month.
What do you think about the latest judicial report that says Hodlnaut downplayed the company’s exposure to the Terra collapse? Please comment below to let us know your thoughts on this topic.
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