Crypto Platform Hodlnaut Lost $190 Million Due to Terra’s Crash

let atwWrapper,atwContainerWidth,atwSliderBox,atwTotalWidth; function initATWSlider() { atwWrapper = $('.relatedInstruments'); atwSliderBox = atwWrapper.find('.slider'); atwContainerWidth = atwWrapper.width(); atwTotalWidth = atwSliderBox.width(); if(window.domainId === '2' || window.domainId === '3'){ atwWrapper.find('.sliderRight').addClass('js-slider-prev'); atwWrapper.find('.sliderLeft').addClass('js-slider-next'); } else { atwWrapper.find('.sliderRight').addClass('js-slider-next'); atwWrapper.find('.sliderLeft').addClass('js-slider-prev'); } if(atwSliderBox.find('.instrumentBox').length > 6){ atwWrapper.find('.js-slider-next').fadeIn(600); } } function atwMoveRight() { atwWrapper.find('.js-slider-prev').fadeIn(150); $(".slider > :visible:first").hide(150) $(".slider > :visible:last").next().show(150); if(!$(".slider > :visible:last").next().find('.name')()){ atwWrapper.find('.js-slider-next').fadeOut(150); return; } } function atwMoveLeft() { atwWrapper.find('.js-slider-next').fadeIn(150); $(".slider > :visible:last").hide(150); $(".slider > :visible:first").prev().show(150); if(!$(".slider > :visible:first").prev().find('.name')()){ atwWrapper.find('.js-slider-prev').fadeOut(150); return; } } initATWSlider(); //update star icon on adding/removing instrument to/from specific watchlist atwWrapper.on('click', 'label.addRow', function() { let parent = $(this).parent(); let checkedPortfolio = false; parent.find('input[type=checkbox]').each(function () { if($(this).is(':checked')){ checkedPortfolio = true; } }); let closestStar = $(this).closest('.addToPortWrapper').find('.star'); if(checkedPortfolio){ closestStar.addClass('added'); }else{ closestStar.removeClass('added'); } }); //update star icon on creating new watchlist atwWrapper.find('.js-create-watchlist-portfolio').find('a.js-create').on('click',function () { let parent = $(this).parent(); let watchlistName = parent.find('input[type=text]').val(); if(!watchlistName){ return; } let star = $(this).closest('.addToPortWrapper').find('.star'); star.addClass('added'); }); //update star icon on adding new position atwWrapper.find('.js-create-holdings-portfolio').find('.js-submit').on('click',function () { let addPositionForm = $(this).closest('.addToPortfolioPop').find('.holdingsContent'); let amount = addPositionForm.find('.js-amount').val(); if(amount < 1){ return; } let star = $(this).closest('.addToPortWrapper').find('.star'); star.addClass('added'); }); atwWrapper.find('.instrumentBox').find('.shortInfo').on('click',function () { if(!window.ga){ return; } let pairId = $(this).parent().find('.js-add-to-portfolio').attr('data-pair-id'); let pairType = window.atwPairTypes[pairId]; window.ga('allSitesTracker.send', 'event', 'content', 'symbol link clicked', '', { "dimension147":"symbol_link_clicked", "dimension163":"click", "dimension148":"symbol", "dimension162":"content add to watchlist", "dimension161":"article page", "dimension142":"article", "dimension75":pairType, "dimension138":pairId, "dimension118":"2926998" }); window.open($(this).attr('data-href')); }); window.atwPairTypes = {"1170319":"currency"};

• Hodlnaut faced a loss of over $190 million due to the stablecoin’s collapse.
• “It appears that the directors had downplayed the extent of the group’s exposure to Terra/Luna,” say Interim Judicial Managers.
• Hodlnaut laid off 80% of its staff and sharply cut interest rates.

Hodlnaut, the embattled crypto lender, understated its exposure to the collapsed digital token ecosystem devised by fugitive Do Kwon and suffered a $190 million loss due to Terra’s crash.

According to a recent Bloomberg report, Hodlnaut changed part of its holdings in digital assets to UST early this year. The company lost around $190 million due to the stablecoin declining virually to zero.

JUST IN: #Crypto lender Hodlnaut lost $190 million in the Terra collapse, Bloomberg reports.

— Watcher.Guru (@WatcherGuru) October 31, 2022

In Hodlnaut’s creditors initial report to the court, the Interim Judicial Managers disclosed,

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

This year’s crypto crisis began in May with the demise of Terra’s coins, the algorithmic stablecoin UST and sibling token LUNA. Directors of the lender’s Hong Kong division claimed that the company suffered a loss of $189.7 million.

Hodlnaut’s board “made an about-turn” regarding the implications and informed the Singapore police department that digital assets had been converted to TerraUSD in a letter dated July 21.

Nearly a week after stopping services, the company let go of about 80% of its workers and dramatically lowered its interest rates.

According to some estimates, Hodlnaut has $88 million in assets and $281 million in unpaid debt, for an asset-to-debt ratio of 0.31.

The post Crypto Platform Hodlnaut Lost $190 Million Due to Terra’s Crash appeared first on Coin Edition.

See original on CoinEdition