Singapore-based crypto lending company Hodlnaut reported in a court filing that it has a financial shortfall of approximately $200 million.
Hodlnaut stopped withdrawals earlier this month and then applied for credit protection. In the statement he submitted to the court for credit protection, he included data that would strengthen his application.
Terra Damages Hodlnaut’s Financial Structure
Hodlnaut’s court affidavit was presented to customers after news confirming that the company was dealing with a police case in Singapore on August 19 and had laid off 80 percent of its staff to save cash.
Hodlnaut’s affidavit includes assets of SGD 122 million ($88 million), but outstanding debt of SGD 391 million (approximately $281 million). This shows that the fiscal deficit is approximately 193 million dollars.
The document states that Hodlnaut holds approximately $317 million in UST, the stablecoin that failed the Anchor Protocol on Terra as a way to pass on high returns to its clients. In May, Terra’s stablecoin UST quickly diverged from the dollar, causing $189.7 million in losses to Hodlnaut, according to the statement.
Hodlnaut is not the only Singapore-based firm facing financial difficulties. Crypto exchange Zipmex and crypto lending company Vauld are also among companies seeking creditor protection in the country.
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