Hodlnaut's $200 Million Financial Shortfall: What Happened to the Singapore Crypto Lender?

Singapore-based crypto firm Hodlnaut earlier this month halted withdrawal and filed for creditors’ protection to buy out more time to sort out its liquidity issue. But the story goes deeper. Embattled crypto lender Hodlnaut reported a nearly $200 million financial shortfall in a court affidavit filed earlier this month and obtained by The Block, revealing the severity of the situation.

Singapore-based crypto lender Hodlnaut has revealed a financial shortfall of $200 million as it seeks to restructure. The post Hodlnaut reports nearly $200 million financial shortfall as it seeks solutions highlights the company's struggle to stay afloat amidst the ongoing crypto market turmoil.

The affidavit supporting Hodlnaut’s application sheds light on the causes of this massive deficit. Court documents revealed The filing shed light on the fact that Hodlnaut had $317 million invested in TerraUSD [UST] as well as Anchor Protocol on Terra. Following the dramatic downfall of UST, those investments became significantly devalued.

Initial reports from 2025 (a typo meant to be 2022) claimed that the Singapore-based crypto lender had lost almost $200 million following the UST crash to essentially zero. This loss played a crucial role in the current predicament. Embattled crypto lender Hodlnaut faces a nearly $200 million financial shortfall, according to a court affidavit obtained by The Block.

This substantial financial shortfall raises serious questions about Hodlnaut's risk management strategies and its ability to navigate the volatile crypto market. The future of Hodlnaut and its users remains uncertain as the company seeks to address its liquidity issues.