The Singapore and Hong Kong-based Hodlnaut has a funding gap of about US$193 million, and potentially 17,513 creditors, crypto media outlet The Block reported citing an affidavit the troubled crypto lender filed with the court last week.

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Fast facts

  • Hodlnaut currently has S$391 million (US$281 million) in unpaid debt against S$122 million Singapore dollar (US$88 million) in assets, resulting in an asset-to-debt ratio of 0.31, according to The Block.
  • Hodlnaut defines potential creditors as “users who actually deposit tokens and may become creditors,” according to The Block.
  • Hodlnaut invested about US$317 million in the Anchor protocol on Terra and the stablecoin’s troubles cost Hodlnaut US$189.7 million, The Block reported the filing.
  • Between June 14 and July 15, Hodlnaut said it suffered a “larger-than-usual net outflow” of about US$150 million as clients scramble to withdraw funds in a falling market, The Block cites an affidavit.
  • Hodlnaut said on Friday that they may introduce a way to allow users to withdraw their deposits at a discount, but wait until a Singapore court allows them to appoint a judicial manager to take over the insolvent company.
  • Hodlnaut did not file for suspension but applied for the judicial manager’s takeover, which will likely protect the company from creditor claims and lawsuits.
  • Hodlnaut also said last Friday that they have laid off about 40 employees, or 80 percent of the workforce, since freezing platform activity in early August.

See related article: Hodlnaut exploring option to allow withdrawal of deposits with interest before closing accounts