The bankruptcies of BlockFi and Celsius exposed the Kingdom of Bhutan’s investments, which were previously kept secret from the public.
Bhutan’s $2.9 billion national investment arm, Druk Holding & Investments, was a client of bankrupt crypto lenders BlockFi and Celsius, according to documents revealed in an April 15 Forbes report.
Druk Borrowed 30 Million USDC
According to the published report, during the three months that Celsius filed for bankruptcy, Druk withdrew over $65 million and invested $18 million in digital assets.
BlockFi filed an accusation that Druk did not return the $30 million loan it received. Allegedly, Druk borrowed 30 million USDC against collateral of 1,888 BTC in February 2022. However, according to BlockFi’s claims, Druk refused to return the entire loan.
According to the reports released, Druk Holding & Investments processed dozens of transactions between April and June 2022, including depositing, withdrawing and borrowing many crypto assets such as Bitcoin, Ethereum and Tether.
These developments are not the first time that Bhutan and cryptocurrencies are used in the same sentence. In 2021, Finbold reported that Ripple signed a collaboration with Bhutan’s central bank, the Royal Monetary Authority (RMA). The agreement aimed to run a pilot project to facilitate cross-border and wholesale payment through a CBDC solution.
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