Hodlnaut Declares $193M Debt Hole While Asking For Judicial Protection

In a court statement submitted earlier this month, controversial cryptocurrency lender Hodlnaut disclosed a roughly $200 million cash deficit. The reasons behind the decision to stop accepting withdrawals are detailed in the affidavit supporting Hodlnaut’s request for judicial control, submitted on the 12th of August. Customers were given access to the document after the business said in a blog post that it is under investigation by Singaporean authorities and has laid off 80% of its workers to save money. According to the declaration, Hodlnaut has an outstanding obligation of SGD 391 million ($281 million), compared to assets of SGD 122 million ($88 million), leaving a deficiency of almost $193 million. It declared that – “As of 8 August 2022, the Hodlnaut Group has an outstanding liability balance of SGD 391M and estimated realizable assets of SGD 122M in cryptocurrency. This financial position gives the Hodlnaut Group a realizable cryptocurrency Asset to Debt ratio of about 0.31 (i.e., 31 cents on the dollar).” Hodlnaut Requested Creditor Protection As was previously reported, the business requested creditor protection in the middle of this month to buy some time to sort out its financial problems. According to the paper, Hodlnaut used Anchor Protocol on Terra to store almost $317 million in the US to pass large dividends on to its users. According to the paper, the crypto lending company then had “higher than average net w...