On Friday, the Algorand foundation informed the public of its $35 million in Circle’s USDC exposure to the troubled Singapore-based crypto lender Hodlnaut.
On August 8, Hodlnaut joined the list of crypto lending firms to suspend withdrawal on its platform citing the current market conditions as the reason for its action, the same month, the firm filed for creditors protection, and not quite long, it laid off 80% of its workforce.
According to the release, the funds were surplus to Algorand’s “day-to-day requirements and represent less than 3% of the Foundation’s assets, and we do not anticipate operational or liquidity issues due to this action.”
Algorand, as part of its mission, usually invests a part of its excess treasury capital to generate yield and the funds exposed to Hodlnaut were used for that purpose.
The foundation is in pursuant of all legal solutions to maximize the recovery of its assets and will not stop to do so.
In late August, the Singapore High Court appointed Algorand’s nominees, Ms. Angela Ee and Mr. Aaron Loh of EY Corporate Advisors Pte Ltd, to act as the interim judicial managers of Hodlnaut, with the purpose to identify, protect as well as to preserve Hodlnaut’s assets until further court action commences.
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