The cryptocurrency lender Hodlnaut reportedly downplayed the extent of the company's exposure to the Terra ecosystem that cost them nearly $190 million, according to a judicial report.
The latest report by Singapore High Court-appointed interim judicial managers note that directors of the crypto lender Hodlnaut downplayed the extent of the group's exposure to Terra/Luna both during the period leading up to and following the collapse in May 2022. The company has been hiding this case for a long time.
A Bloomberg report on Monday said Hodlnaut deleted more than 1,000 crucial documents that could have revealed the said exposure. The judicial managers prevented the judicial managers to resolve issues between the crypto lender's Hong Kong subsidiary and Hodlnaut in Singapore.
The judicial managers also said several other reasons that posed challenges in piecing what happened to the crypto lender. The accounting and financial records have not been properly maintained, the report said.
In addition, the IJM mentioned that some company directors and employees were preventing access to 'various key books and records'. Hodlnaut, Celsius, Three Arrows Capital, and Voyager were among the companies that were significantly impacted by their exposure to theterra ecosystem, which imploded in May and resulted in a loss of $60 billion in investment.
In July, Hodlnaut stopped withdrawals citing recent market conditions and said it would focus on 'preserving its assets' and stabilizing its liquidity. In August, the company suspended withdrawals, token exchanges and deposits.
The cryptocurrency lender eventually filed a motion with the Singapore High Court to have it placed under judicial management in hopes that the move would prevent it from liquidating its assets.