Crypto Lending Platform Hodlnaut Owes $35M to Algorand Foundation
Main page News, Cryptocurrency
Hot topic
Sept. 12, 2022

Hodlnaut, a crypto lending platform, owes the Algorand Foundation $35 million in USD Coin (USDC).

According to the nonprofit, the company is using "all legal remedies" to recover the assets.

According to the press release:

"As part of the Foundation's mission, from time to time, we invest a portion of our surplus treasury capital to generate yield for the purpose of Algorand ecosystem development."

Subscribe to our Telegram channel to get daily short digests about events that shape the crypto world

The organization has noted Hodlnaut's debt is less than 3% of the foundation's total assets. According to the statement, the situation does not involve operational risks and will not generate "liquidity problems."

Last August 13, the company requested a judicial office in Singapore to stabilize its financial situation. According to the company, the move was driven by the desire to avoid the forced liquidation of users' assets in Bitcoin and Ethereum.

Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange

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

Read also:
Please describe the error