Hodlnaut discloses $280m in outstanding liability after crypto dip

Singapore-based crypto lender Hodlnaut disclosed US$193 million in losses in an affidavit the firm filed to apply for judicial management in Singapore, The Block reported.

The document showed that Hodlnaut had an outstanding liability of S$391 million (US$280 million), which stood against assets of S$122 million (US$87.3 million).

The company also recently announced massive layoffs affecting 80% of staff as well as updates regarding police proceedings. The news came after the firm froze withdrawals on August 8. The firm oversaw US$750 million at its peak volume in March.

The lender is looking into “limited exits” for its users at 25 cents on the dollar, the affidavit stated, calling it a “better option” than liquidation. The firm believes that the latter strategy will take relatively longer, and result in lower returns. Regardless, Hodlnaut has made it clear that it is not in liquidation, and that it foresees stable future returns.

See also: Hodlnaut may have had $187m exposure to Terra collapse

Currency converted from Singapore dollars to US dollars: US$1 = S$1.40