The Algorand Foundation has accused the Hodlnaut crypto lending platform, which is going through bankruptcy proceedings, of failing to pay short-term deposits.
The Algorand Foundation has publicly announced that Singapore-based cryptocurrency platform Hodlnaut owes it $35 million in USD Coin (USDC) stablecoins. The company has said it intends to take legal action if the debt is not repaid.
“The Foundation is using all legal remedies for the age of the assets and will continue to do so until the money is returned,” says the Algorand Foundation.
The Algorand Foundation invests part of the surplus capital for profit in order to develop its own ecosystem. According to representatives of the crypto lender Hodlnaut, the platform now owes the Algorand Foundation less than 3% of total assets.
The Algorand Foundation team claims that the situation does not entail operational risks and will not cause “liquidity problems”. The main debt is placed in short-term deposits.
The fund has not been able to withdraw its assets since August 8, when the landing platform Hodlnaut suspended the withdrawal of any funds and operations with tokens.
Hodlnaut petitioned the Supreme Court of Singapore to grant relief to the company’s assets on August 16, immediately after the suspension was announced. The solution was positioned as a method to avoid the forced liquidation of users’ assets in BTC and ETH. To reduce costs, the company cut 80% of its staff.
Source: Bits
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