Algorand recently shared its balance sheet where it has revealed an enormous balance hole. The blockchain infrastructure has revealed that it has a void of 35 million USDC which translates to $35 million.
Algorand Exposed $35 Million to Hodlnaut
The officials at Algorand have revealed that their balance sheet has a $35 million deficit, which is due to its involvement with Hodlnaut.
The blockchain infrastructure company had spent $35 million worth of USDC at Hodlnaut. However, Hodlnaut found itself facing a financial crisis.
The lending firm has been facing a huge financial crisis and as a result, it had to discontinue withdrawal services for the users on August 8.
It was on August 8 when Holdnaut announced that it had paused withdrawals for the users as it was facing a financial crisis.
Algorand’s Goal
Algorand has been operating as a not-for-profit community organization that is a blockchain infrastructure providing institutional-grade services. The platform is known for providing smart contract functionality to users.
Algorand has been around in the crypto-blockchain industry for a while and it has been aiming to develop the Algorand ecosystem, making it more adaptable for the users.
Algorand Taking Legal Action against Hodlnaut
In September, Algorand opened up about its deficit of $35 million. The platform also revealed that it is doing whatever is possible to recover the funds it has lost to Hodlnaut.
The officials announced through the website that they are in touch with their legal teams to come up with a legal remedy. They are determined to recover their funds and for this purpose, they will be using all legal resources.
They will be taking all legal options into consideration in order to recover their funds from Hodlnaut.
Hodlnaut’s Demise
Hodlnaut started facing a financial crisis when it ended up facing a huge loss after investing a tremendous amount of money into TerraUSD (UST).
According to data, Hodlnaut had invested $300 million into TerraUSD (UST). The investment had been made through the Anchor protocol but the value of UST took a huge downturn in early May.
As the Terra Network ended up facing a huge debugging issue, its value plunged tremendously. It ended up dragging every major company to huge losses who had invested in UST.
As Hodlnaut faced a huge upset due to the Anchor protocol and the depegging of UST plus LUNA’s plunge, the lending firm had to pause withdrawals.
After fighting for a long time dealing with the financial crisis, Hodlnaut had no choice but to proceed with halting its withdrawal services on August 8, 2022.
Algorand currently runs its own native cryptocurrency ALGO which has a trading value of $0.3283 and it has surged 1.09% in the past 24 hours. If Algorand fails to settle its legal pursuit, ALGO may feel the impact of that.
