Korean blockchain fund Blockwater Technologies violated loan obligations and failed to repay $3.4 million in binance USD (BUSD) in a timely matter, decentralized finance (DeFi) lending firm TrueFi said in a recent announcement. As a result, TrueFi issued a notice of default to Blockwater, which managed to complete 8 payments, totaling $645,405.
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The lending firm said in a blog post that initially it was considering loan amendment to increase the borrowing rate and extend maturity. However, TrueFi ultimately determined that a court-supervised proceeding would lead to a "better outcome for stakeholders given the complexity around the sudden insolvency."
TrueFi emphasized that Blockwater's loan represents only 2% of its total value outstanding. The firm reportedly issued over $1.7 billion in unsecured loans and successfully collected approximately $1.5 billion in repayments across 136 loans.
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