Hodlnaut, a crypto lender, has lost around $190 million in the Terra crash: a judicial report has reportedly revealed. According to a Bloomberg report, the Singapore High Court appointed interim judicial managers who wrote the report. In the report, it is alleged that the directors of Hodlnaut downplayed the extent of the group’s exposure to Terra/Luna during the period leading up to and following the Terra/Luna collapse in May 2022.
Hodlnaut, a Singapore-based cryptocurrency lending & borrowing platform, joined the line of loss with Celsius, Voyager Digital, and Three Arrows Capital. These three are the previous ones devastated by exposure to the Terra ecosystem and its stablecoin UST. In July 2022, citing recent market conditions and focusing on stabilizing its liquidity and preserving assets, the firm shuttered withdrawals.
The two interim judicial managers appointed by the Singapore High Court to write the report were appointed in August. The interim judicial managers were Ee Meng Yen Angela and Aaron Loh Cheng Lee from EY Corporate Advisors.
According to Bloomberg, it is also stated in the report that over 1,000 deleted documents from Hodlnaut’s Google Workspace could have helped shed light on the business. And the interim judicial managers also failed to obtain documents related to the firm’s Hong Kong arm. The firm’s Hong Kong arm owes around $58 million to its Singapore division.
It was not only the Hodlnaut’s investors who were affected by this exposure to the Terra crash but its staff was also affected by this crash. After closing withdrawals, the firm kicked out over 80% of its staff to reduce its expenditure. More than 40 people of Hodlnaut lost their jobs in this exposure to the Terra crash.
The relationship between Hodlnaut and its administrators has not been good, as Simon Lee, the founder of Hodlnaut, petitioned the Singapore High Court to remove EY as its IJM. He petitioned earlier this month and accused the IJM of dishonesty.