Embattled crypto lender Hodlnaut saw significant losses from the Terra blockchain collapse last May, according to a report. The report notes that Hodlnaut downplayed its exposure to the Terra ecosystem, claiming it lost $190 million from the incident.
The report says Hodlnaut downplayed Terra’s exposure following the collapse
More than 1,000 deleted documents from crypto lender Hodlnaut’s Google workspace showed discrepancies, according to ajudicial reportdiscovered by Bloomberg on October 31. The Judicial Brief confirms court filings made public at the end of August that Hodlnaut was heavily underfunded by the collapse of Terra.
Bloomberg’s Suvashree Ghosh and Sidhartha Shukla explain that the judicial report shows that the crypto lender “suffered losses of nearly $190 million from the wipeout.” Newly discovered and deleted documents show that Hodlnaut executives allegedly downplayed their exposure to Terra; that Hodlnaut also, on May 11, did not go all-in on the now defunct stablecoin Terrausd (UST) He tweeted.
“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/. yields on USDT/DAI is generated in kind and paid for by our loans to institutions and a small amount to defi protocols like Compound Finance,” Hodlnaut claimed.
“The directors appear to have underestimated the extent of the group’s exposure to Terra/Luna, both in the period leading up to Terra/Luna’s collapse in May 2022 and thereafter,” said the judicial report found by Bloomberg.
“In a letter dated July 21, Hodlnaut’s directors reported to the Singapore police station that digital assets had been converted to [Terrausd], ‘about’ the impact, Ghosh and Shukla wrote.
The report continues.
Much of the latter was lent on Anchor Protocol, a decentralized financial platform developed on the Terra blockchain, the report states.
It is unclear how Singapore, where Hoddle Note is based, will deal with embattled crypto lenders, but the country’s regulation is proceeding furiously. This month, for example, Singapore police said they had received 631 reports of crypto fraud in 2021.
What do you think about the latest judicial report alleging that Hodlnaut downplayed its exposure to the Terra collapse? Let us know what you think about this subject in the comments section below.
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