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Troubled Crypto Lender Hodlnaut Had $18M on FTX Before Withdrawal Freeze

Oliver Knight - CoinDesk
2022-11-10 11:27

Singapore-based crypto lender Hodlnaut has been dealt another blow on its path to recovery after it emerged that it held $18 million worth of crypto on FTX, the crypto exchange that halted withdrawals earlier this week.

According to a report by Hodlnaut's interim judicial managers, which was published on Oct. 28, Hodlnaut consolidated over 95% of its assets on centralized exchanges, with $18.1 million being held on FTX including bitcoin (BTC), ether (ETH) and stablecoins.

FTX customers are currently unable to get funds out of the exchange after a liquidity crunch that stemmed from a CoinDesk report exposing the vulnerable financial situation of Alameda Research - FTX's sister company.

It is possible that Hodlnaut's managers moved funds away from FTX before operations were halted.

Hodlnaut was one of several companies that succumbed to the pressures of this year's cryptocurrency bear market, freezing withdrawals in August after reportedly losing $189.7 million in the collapse of the Terra ecosystem.

The report by Hodlnaut's managers also states that employees of the lending firm withdrew a total of $550,000 between the beginning of July and when withdrawals were halted.

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