Crypto Platform Hodlnaut Lost $190 Million From Terra’s Crash (Report)

UST’s collapse supposedly resulted in losses of nearly $190 for Hodlnaut.

The Singaporean cryptocurrency lending platform – Hodlnaut – reportedly lost approximately $190 million due to its exposure to Terra’s algorithmic stablecoin UST.

The latter’s collapse in May has been one of the most notorious crypto events so far this year. Numerous sources revealed that the crash of the native token LUNA and the stablecoin UST caused crucial losses and some investors even committed suicides.

Hodlnaut Among Terra’s Victims

A recent Bloomberg coverage informed that Hodlnaut converted some of its digital asset holdings to UST earlier this year. As a result of the stablecoin’s plunge to virtually zero, the firm lost nearly $190 million.

“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 reads.

The Singaporean entity seems to have been hiding the facts for a while. Bloomberg’s data disclosed that Hodlnaut deleted over 1,000 “key” documents that could have shown the aforementioned exposure. As such, the judicial managers were unable to solve the issues between the company’s Hong Kong subsidiary and Hodlnaut Pte in Singapore. The former supposedly owes $58.3 million.

Hodlnaut suspended withdrawals, deposits, and token swaps in August, citing “difficult market conditions.” Some of its employees withdrew over $500,000 worth of assets a month before, hinting they were aware of the issues.

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