Algorand Admits it has Lost $35 Million in the Hodlnaut Implosion

cryptonews.com:

The ongoing bear market in the cryptocurrency market that started earlier this year has led to many companies suffering immense losses. One of the recent firms to announce losses because of the bear market is Algorand, which has reported a loss of $35 million following the Hodlnaut debacle.

Algorand issued an announcement saying that the Algorand Foundation has reported a loss of $35 million worth of USDC tokens following the company’s exposure to Hodlnaut. Hodlnaut is a crypto lending platform based in Singapore that has been placed under Interim Judicial Management.

Hodlnaut’s changes in management happened after the company suspended withdrawals from the platform on August 8, 2022. The crypto lender joined the suit of decentralized finance (DeFi) companies shutting their doors because of the persistent bear market.

The Algorand funds lost because of the freezing of accounts by Hodlnaut were daily surplus requirements representing not more than 3% of the assets owned by the foundation. The foundation has also said that the effects of halting withdrawals did not result in operational and liquidity issues within the foundation.

The foundation has also said that from time to time, it invests a portion of its surplus treasury capital to generate yield. This is done to generate yield for the benefit of the Algorand ecosystem, and the funds have also been invested in Hodlnaut, a yield farming platform.

In the announcement, Hodlnaut also said that the largest share of investments comprised locked short-term deposits that were no longer available after Hodlnaut took the action of halting withdrawals.

The Algorand Foundation is also looking for legal solutions that will maximize the assets recovered from the crypto lender, and it is