Hodlnaut owes $200m debt to 17,000 creditors: report

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The Singapore and Hong Kong-based Hodlnaut has a funding gap of around US$193 million and potentially 17,513 creditors, according to a crypto news outlet. The block reported citing an affidavit the struggling crypto lender filed with the court last week.

See related article: Indian authorities freeze Vauld stock exchange assets worth $46.5 million

Fast facts

  • Hodlnaut currently has S$391 million ($281 million) in outstanding debt against S$122 million ($88 million) in assets, giving an asset-to-debt ratio of 0.31, according to The Block.
  • Hodlnaut defines potential creditors as “users who actually deposit tokens and can become creditors,” according to The Block.
  • Hodlnaut invested around $317 million in the Anchor protocol on Terra, and stablecoin issues cost Hodlnaut $189.7 million, The Block reported.
  • Between June 14 and July 15, Hodlnaut said it suffered a “larger than usual net outflow” of around US$150 million as customers rushed to withdraw funds in a falling market, The Block cites an affidavit.
  • Hodlnaut said on Friday 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 director to take over the insolvent company.
  • Hodlnaut has not filed for a stay but has requested a repossession by the judicial director, which will likely shield the company from creditor claims and lawsuits.
  • Hodlnaut also said last Friday that it has laid off about 40 employees, or 80% of the workforce, since the platform’s activity freeze in early August.

See related article: Hodlnaut is exploring an option to allow withdrawal of deposits with interest before accounts are closed

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