Last Updated on November 1, 2022 by Bitfinsider

According to sources, the Singapore-based cryptocurrency lender has lost close to $190 million due to its exposure to Terra’s algorithmic stablecoin UST.

The crypto lending platform had minimized its exposure to Terra’s stablecoin UST despite suffering a massive loss in the most recent wipeout.

Bloomberg reports that interim judicial managers discovered this information.

It is one of the earliest reports since the Singapore court granted Hodlnaut creditor protection to provide them time to formulate a recovery strategy.

August was the month when protection was provided. The collapse of Terra’s algorithmic stablecoin UST has been one of the most significant and widely discussed crypto catastrophes this year.

According to numerous stories, investors have suffered significant losses and some have even been driven to the point of death.

Reports indicate that Hodlnaut has misrepresented the facts. Data reveals that the crypto lender destroyed over a thousand crucial papers that may have been disclosed prior to the revelation.

The judicial administrators were unable to resolve the disputes between the Hong Kong subsidiary of the company and Hodlnaut Pte in Singapore. The Hong Kong subsidiary is in debt for $58,3 million.

In August, the lender banned withdrawals, deposits, and token exchanges, citing “challenging market conditions.”

Some of its workers withdrew over $500,000 worth of assets before stating that they were aware of the prevalent concerns.

The directors of Hodlnaut addressed a letter to the Singapore police agency telling them that the digital assets had been converted to TerraUSD.

A substantial amount of TerraUST was allocated to the Anchor Protocol, a decentralized finance (Defi) network built on the Terra blockchain.