A judicial report reveals that cryptocurrency lender Hodlnaut lost about $189.7 million due to its exposure to the Terra crash.
according to bloomberga report prepared by the Interim Judicial Manager appointed by the Singapore High Court found that Hodlnaut’s directors had “failed to protect Hodlnaut’s group’s Terra, both in the period leading up to and after the Terra/Luna collapse in May 2022.” / disrespected the extent of their exposure to Luna.”
Founded in 2019, the Singapore-based firm joins Celsius, Voyager Digital, Three Arrows Capital and others. These companies, too, have been devastated by exposure to the Terra ecosystem and the doomed algorithmic stablecoin UST.
The company suspended withdrawals in July 2022, citing “recent market conditions” and its focus on stabilizing liquidity and “protecting assets.”
August, Singapore High Court Appointed 2 employees From EY Corporate Advisors Ee Meng Yen Angela and Aaron Loh Cheng Lee, he will serve as Interim Judicial Manager (IJM).
Around bloombergThe report also says the more than 1,000 documents removed from Hodlnaut’s Google Workspace may have helped shed light on the business, but owes the interim justice manager about $58 million. We were unable to obtain “important documents” related to the company’s Hong Kong division. to the Singapore division.
The company’s financial troubles have not only affected investors, says Hodlnaut 80% shaved About 40 employees to “reduce the company’s spending” right after the withdrawal deadline.
Singapore may soon tighten regulations on cryptocurrency lending and staking, at least for retail investors, after several high-profile lenders collapsed.
The Monetary Authority of Singapore (MAS) proposed in a new report Digital asset service providers “must not mortgage, charge, pledge, or hypothesize a retail customer’s virtual currency,” stating that the hypothesis is that assets are pledged as collateral in exchange for a loan. It refers to the process to use.
But this is not the only measure taken by Asian city-states to protect investors from future losses.
Prospective investors may also be forced to pass a knowledge test that assesses their understanding of potential investment risks such as market volatility and technology failures before buying or selling digital assets. .
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