Algorand Foundation revealed $35M exposure to Hodlnaut

Algorand Foundation revealed $35M exposure to Hodlnaut

Sep 12, 2022
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The blockchain’s Foundation state that it won’t anticipate issues due to the exposure and will pursue “all legal remedies”.

Algorand Foundation has announced its community a $35 million USDC exposure to Hodlnaut, a Singapore-based crypto lender that was placed under Interim Judicial Management after suspending withdrawals from its platform on August 8, 2022.

The Foundation, dedicated to developing the Algorand ecosystem by “fulfilling the global promise of blockchain technology”, invest a portion of its surplus treasury capital to generate yield for the purpose. “These funds were surplus to day-to-day requirements invested for that and represent less than 3% of the Foundation's assets”, the company outlined in a statement. It also explained that it will not anticipate operational or liquidity issues due to this action and that is currently “pursuing all legal remedies to maximize asset recovery and will continue to do so”.

On August 29, 2022, the Singapore High Court appointed Algorand's nominees, Ms. Angela Ee and Mr. Aaron Loh of EY Corporate Advisors Pte Ltd, to act as the interim judicial managers of Hodlnaut, with the aim that they identify, preserve, and protect Hodlnaut's assets until further court action begins.

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