Cryptolending platform Hodlnaut owes $35 million to Algorand Foundation

Cryptolending platform Hodlnaut owes $35 million to Algorand Foundation

Hodlnaut Cryptolending Platform owes Algorand Foundation $35 million

Crypto-lending platform Hodlnaut owes Algorand Foundation $35 million in USD Coin (USDC) stablecoins. The non-profit organization said it was using “all legal remedies” to recover assets.

“As part of our organization's mission, we sometimes invest some of our surplus capital to profitably grow the Algorand ecosystem,” the post reads.

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The organization noted that Hodlnaut's debt is less than 3% of the total assets of the Algorand Foundation. According to the statement, the situation does not entail operational risks and will not cause “liquidity problems”.

Most of the debt is in short-term deposits. The structure lost access to them when, on August 8, 2022, the landing platform suspended the withdrawal of funds and operations with tokens.

On August 13, the company requested a judicial office in Singapore to stabilize its financial situation. The step was explained by the desire to avoid the forced liquidation of users' assets in bitcoin and Ethereum. 

The platform also fired 80% of its employees to cut costs.

Recall that at the end of the same month, Hodlnaut reported a “hole” in its balance sheet for $193 million. The firm placed client funds in the Anchor protocol of the Terra ecosystem. After the collapse of the latter, it suffered a loss of $189.7 million.

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