It has been almost three years since I last wrote about Hodlnaut, as the bankruptcy proceedings in Singapore have been ongoing. About a year ago now, things really started to pick up, and emails started to go out about a settlement, so the managers in charge of the liquidation (also called liquidators) had affected individuals submit their claims. Earlier this year, affected users received notification of whether their claim was accepted and, if so, how much.
The end of July was the cutoff for submitting your bank account information for the first dividend payment but what was interesting was that users still had no idea how much they could expect back. When Hodlernaut went under due to the TerraLuna crash, the company had roughly $88 million in assets and $281 million in liabilities, leaving it underwater by over $190 million, or over 3 times its assets. What made that number so hard to come back from was that people could not only put BTC, ETH, etc. to earn yield but also USDC and other stablecoins that Hodlernaut had converted to UST, which then fell from its dollar peg to a fraction of a cent.
So how much will I be getting back with this first distribution? Well, the payout is also in Singaporean Dollars or SGD. Out of the 655.93 accepted, I will be getting 176.58. That is a dividend rate of 26.92%, meaning for every dollar ($1) they accepted, you would get 26.92 cents ($0.2693). With today's conversion rate, that is $137.56, which, considering I figured I had lost everything, I will take!
The liquidator has said in his notices (emails) that there is a chance of a second dividend but I am not banking on it. Given the $291 million they owed and the $88 million in assets, the math doesn't really leave any wiggle room ($291 million times the dividend rate gives you 78.37, and the assets were $88 million). As I said, since I figured it was a complete wash, I still count this as a win. Once the liquidator submits the information at the end of the month, the money may take up to 3 months to reach my bank account.
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