The collapse of Terra cryptocurrency Leading to Hodelnut’s $190 million loss became. The judicial managers are not able to solve the problems between the Hong Kong and Singapore branches of this company.
Hoddlenut Crypto Lender (Hudlnaut), based in Singapore, has lost nearly $190 million due to the collapse of stablecoin Terra UST. Despite Hudelnut’s loss of 190 million dollars, the company believes that the fall of Terra did not have much effect on its performance. According to Bloomberg, Hodelnut company’s income statistics have been reviewed by temporary judicial administrators.
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Details of Hodelnut’s $190 million loss
Hodelnut’s $190 million loss The first report published after accepting the protection of users’ property Hodlnaut considered by the Singapore court. Hodelnut conservation plan was implemented in August. The collapse of the UST stablecoin has been one of the biggest and most talked about mistakes of the cryptocurrency industry this year.
Some reports indicate a very dire situation for the Hodelnut company. This issue pushed some investors to the verge of suicide. Some news outlets claimed that Hodelnut had transferred part of its digital assets to UST earlier this year.
As it turns out, Hoddlenut has misrepresented the facts. Data shows that the cryptocurrency lender is missing more than 1,000 key documents. This activity leads to preventing the publication of correct information.
Indebtedness of Hodelnut’s Hong Kong branch
Adjudicators are unable to resolve issues between Hodlnaut’s Hong Kong branch and Singapore’s Hodlnaut Pte. The Hong Kong subsidiary owes about $58.3 million.
Hodelnut In August, it limited the possibility of user capital withdrawal and swap tokens. The company’s justification for this action was called “difficult market conditions”. Some Hodelnut employees had already withdrawn $500,000 from their holdings before Terra crashed.
Hodelnut executives sent a letter to the Singapore Police Department. In this letter to the subject Conversion of Hodlnaut’s digital assets to TerraUSD paid. The majority of TerraUSD assets have been transferred to the Anchor protocol. Anchor is a decentralized finance (DeFi) platform. This platform is developed on the Terra blockchain.
Hodelnut reconstruction plan
Hodelnut had applied to the Singapore High Court to place the company under judicial administration. This will help the cryptocurrency lending platform to rebuild its business and avoid forced liquidation of assets.
The judicial management program has provided a legal opportunity to prove Hodelnutt’s claims. According to Hodel Nut company managers, this legal pause provides a suitable space for developing the company’s restructuring plan.
The judicial authorities had trouble finding several key documents related to the Hong Kong branch of the HoddleKnot platform. The branch owes Hodelnut Singapore more than $82.43 million. Reportedly, often Hodlnaut Investments It has been done through the Hong Kong branch of this country.
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