Crypto Lender Hodlnaut Lost Nearly $190 Million in TerraUSD Drop (bloomberg.com) 25
Embattled cryptocurrency lender Hodlnaut downplayed its exposure to the collapsed digital-token ecosystem created by fugitive Do Kwon yet suffered a near $190 million loss from the wipeout. Bloomberg reports:
The loss is among the findings of an interim judicial managers' report seen by Bloomberg News. It is the first such report since a Singapore court in August granted Hodlnaut protection from creditors to come up with a recovery plan. "It appears that the directors had downplayed the extent of the group's exposure to Terra/Luna both during the period leading up to and following the Terra/Luna collapse in May 2022," the report said.
Kwon's TerraUSD algorithmic stablecoin and sister token Luna suffered a $60 billion wipeout in May as confidence in the project evaporated, exacerbating this year's crypto meltdown. Hodlnaut's Hong Kong arm made the near $190 million loss when it offloaded the stablecoin as its claimed dollar peg frayed. In a letter dated July 21, Hodlnaut's directors "made an about-turn" about the impact and informed a Singapore police department that digital assets had been converted to TerraUSD, according to the report. Much of the latter was lent out on the Anchor Protocol, the report said, a decentralized finance platform developed on the Terra blockchain.
Hodlnaut, which operates out of Singapore and Hong Kong, halted withdrawals in August. The judicial report said more than 1,000 deleted documents from Hodlnaut's Google workspace could have helped shed light on the business. The judicial managers haven't been able to obtain several "key documents" in relation to Hodlnaut's Hong Kong arm, which owes $58.3 million to Hodlnaut Pte in Singapore. About S$776,292 appeared to have been withdrawn by some employees between July and when withdrawals were halted in August, the report stated. Most of the company's investments into DeFi were made via the Hong Kong division, it added.
Kwon's TerraUSD algorithmic stablecoin and sister token Luna suffered a $60 billion wipeout in May as confidence in the project evaporated, exacerbating this year's crypto meltdown. Hodlnaut's Hong Kong arm made the near $190 million loss when it offloaded the stablecoin as its claimed dollar peg frayed. In a letter dated July 21, Hodlnaut's directors "made an about-turn" about the impact and informed a Singapore police department that digital assets had been converted to TerraUSD, according to the report. Much of the latter was lent out on the Anchor Protocol, the report said, a decentralized finance platform developed on the Terra blockchain.
Hodlnaut, which operates out of Singapore and Hong Kong, halted withdrawals in August. The judicial report said more than 1,000 deleted documents from Hodlnaut's Google workspace could have helped shed light on the business. The judicial managers haven't been able to obtain several "key documents" in relation to Hodlnaut's Hong Kong arm, which owes $58.3 million to Hodlnaut Pte in Singapore. About S$776,292 appeared to have been withdrawn by some employees between July and when withdrawals were halted in August, the report stated. Most of the company's investments into DeFi were made via the Hong Kong division, it added.
Lost Nearly $190 Million in Monopoly Money (Score:1)
Congratulations
Seems that stablecoins are anything but... (Score:2)
How many of these so-called "stablecoins" are actually stable?
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How many of these so-called "stablecoins" are actually stable?
Does "consistently worth nothing" count?
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Because these stable coins allow/make easier some things.
Many of those things are illegal or shady, but some are legal and not shady, just reflection on banking systems and similar.
The legal non shady things are most likely a fairly small fraction of the total though.
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It's a fancy way of maintaining a balance in a trading account on an exchange.
Re: Seems that stablecoins are anything but... (Score:2)
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Keeping your balance as an entry in someone's database is so, uh, practical. Much better to keep it as an entry in someone else's database, but with blockchain. Even better, you can keep it as an entry in someones database that represents an entry in someone elses database (with blockchain).
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So you are gaining nothing by buying stablecoin and neither are they as a way of holding your cash balance. I
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Guess I should have included sarcasm tags.
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It takes a while for them to get there. Once they reach 0, they're usually quite stable.
Another crypto company... (Score:3)
Another crypto company cakes it's pants, otherwise known as Tuesday.
Apparently we are going to have to get the volume and mass of each one of these crypto-pants-shittings from companies we have never heard of; the way we had to hear about all their coin exchange launches, ICO scams, and NFT mintings that nobody cared about on the way up.
And get off my lawn.
WTF (Score:1)
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Everyone who wants to know already does. Everyone who is still sitting on a pile of worthless electrons doesn't want to know.
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I’m tired of this shit. NO ONE cares.
Cm'on, a bit of healthy Schadenfreude makes my day, gloating at crypto bros' demise makes me temporarily forget my own misery (got toothache at the moment).
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Aaaaaany moment now the dead horse will get up and win the race, you'll see!
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Crypto stories are mandatory due to /.'s owners. So they're not going to go away.
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The Wrong Trousers (Score:1)
Looks like instead of space suits, they should have bought dive suits.
You know what I think? (Score:2)
It couldn't have happened to nicer people, just like the entire crypto industry infact.
They should have invested in ugly monkey pic links (Score:3)
Then they would have made millions like me.
Oh No! (Score:3)
Anyway....
https://web3isgoinggreat.com/ [web3isgoinggreat.com]