“The directors appear to have underestimated the group’s exposure to the Terra/Luna system both during the period leading up to its collapse in May 2022,” the report said. Kwon’s TerraUSD algorithmic stablecoin and sister token Luna suffered a $60 billion write-off in May as confidence in the project evaporated, exacerbating the crypto crash of the year Hoddlenaut’s Hong Kong arm posted a loss of nearly $190 million following the collapse.
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In a July 21 letter, Hoddlenaut executives “made a U-turn” on the impact and informed Singapore police that digital assets had been converted to TerraUSD, according to the report. Much of the latter was lent under the Anchor Protocol, the report said, a decentralized finance platform developed on the Terra blockchain. Singapore- and Hong Kong-based Hodelnaut halted withdrawals in August. monetary policy tightening.