Well, we are now starting to find out the true extent of how bad Hodlnaut's health is and honestly, I never imagined it being as bad as it has now been reported. As someone who had funds on Hodlnaut's platform, I was well aware of the exposure that the platform had to Terra, and factoring in the general market decline the Terra hit was going to be brutal since UST went to near zero. I never would have imagined though what the Interim Judicial Managers have reported I envy the idea of what Voyager users could get out of the FTX deal.
According to the estimates given by the Interim Judicial Managers, Hodlnaut had converted $189.7 million into UST early on in the year. When Terra crashed in May Hodlnaut's board did not do anything until July when they froze withdrawals, laid off 80% of their staff, and informed Singapore's police department. If that was not bad enough the total amount Hodlnaut now has remaining in assets is only $88 million while owing $281 million! It is completely bamboozling to honestly see numbers like this and at first, I thought my email had loaded wrong.
It is absurd and almost has to be borderline criminal for this to have occurred. When reading through the documents I was sent via the Interim Judicial Managers it is clear that the founders and key players are aware of how badly they messed up. Months later the IJMs are still struggling to recover basic things like the computers that were used as claims about them being gifted or given to the individuals remain an issue. Analysis has also shown that when this collapse occurred insiders also were withdrawing funds as well as spiking the day before they froze the funds.
Singapore authorities appear to be looking into this as well. In the documents the IJM address that they have been in communication with the monetary authorities and answering questions about what they have found. Given the issues that the Managers reported like not being given the passwords and second auth needed to access wallets, the founders and team seem to realize that their backs are against the wall as these wallets have been frozen even without their cooperation. It will be interesting to see if Singapore really goes after these individuals since they were one of the first to try to get licensed and were issued a preliminary one only to make Singapore authorities look bad with the collapse. Making regulators never seems to be something that pays off for anyone ever.
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