Algorand Foundation has $35 million exposure to troubled crypto lender Hodlnaut

Quick Take

  • The Algorand Foundation has $35 million exposure in USDC to Hodlnaut.
  • Crypto lender Hodlnaut halted client withdrawals last month.

The Algorand Foundation said that it has a $35 million exposure in USDC to Hodlnaut, a Singapore-based troubled crypto lender that halted client withdrawals last month.

That figure represents less than 3% of the Algorand Foundation's assets, the firm said, adding that it does not anticipate operational or liquidity issues due to its exposure.

"As part of the Foundation's mission, from time to time, we invest a portion of our surplus treasury capital to generate yield for the purpose of Algorand ecosystem development, and these funds were invested for that purpose," the foundation said on Friday.

Hodlnaut halted client withdrawals on Aug. 8 amid liquidity problems. The firm suffered heavy losses in the Terra ecosystem failure, as The Block reported last month, citing affidavits. Hodlnaut had parked some $317 million in terraUSD (UST), the failed stablecoin, in Anchor Protocol on Terra as a way to pass high yields through to its customers. In May, Terra's stablecoin UST sharply de-pegged from the dollar, inflicting losses of $189.7 million on Hodlnaut, according to the affidavit.

The Algorand Foundation said it is pursuing all legal remedies to maximize asset recovery from Hodlnaut.

On Aug. 29, the Singapore High Court appointed Algorand's nominees, Angela Ee and Aaron Loh of EY Corporate Advisors, to act as the interim judicial managers of Hodlnaut, the foundation noted.


© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

AUTHOR

Yogita Khatri is a senior reporter at The Block and the author of The Funding newsletter. As our longest-serving editorial member, Yogita has been instrumental in breaking numerous stories, exclusives and scoops. With over 3,000 articles to her name, Yogita is The Block's most-published and most-read author of all time. Before joining The Block, Yogita wrote for CoinDesk and The Economic Times. You can reach her at [email protected] or follow her latest updates on X at @Yogita_Khatri5.

See More
Connect on

WHO WE ARE

The Block is a news provider that strives to be the first and final word on digital assets news, research, and data.

+ Follow us on Google News
Connect with the block on