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Algorand Foundation lost access to $35 million because of Hodlnaut crypto problems

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hodlnaut review

Nonprofit organization Algorand Foundation lost access to $35 million in USDC stablecoin, which it placed with the Singapore-based lending firm Hodlnaut crypto. This is reported on the organization’s official website.

The claimed amount is 3% of all assets of the Algorand Foundation. Despite the loss of access, the organization does not believe the incident will cause liquidity problems.

“As part of the organization’s mission, we sometimes invest some of our excess treasury capital to generate revenue to grow the Algorand ecosystem, and these funds were invested for that purpose,” the organization said.

The financial terms of Hodlnaut’s use remain unknown, but the organization said it used short-term deposits from the bankrupt firm. The Algorand Foundation is now working on legal efforts to recover the funds, according to the announcement.

Notably, Hodlnaut is not the only company in which the Algorand Foundation has lost money. For example, the organization is also listed as a creditor of another troubled firm, Three Arrows Capital, but the extent of the losses there is not yet known.

Hodlnaut review

Recall that Hodlnaut stopped services to clients in early August, citing the need to “stabilize liquidity.” The company is still unable to give an exact date for resuming cryptocurrency withdrawals.

In late August, a court ruled that Hodlnaut will now be managed by interim executives from consulting firm EY Corporate Advisors. The company, however, insisted that an employee of another consulting firm, Kairos Corporate Advisory, take over management of the firm.

Earlier, we reported that the Biden Administration had authorized a ban on bitcoin mining.



Cryptocurrency

Korea begins blocking bitcoin holdings of Terra founder

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Terra founder

The South Korean prosecutor’s office appealed to local cryptocurrency exchanges to block the assets belonging to Terra founder Do Kwon. Bloomberg writes about it citing law enforcement officials.

The prosecutor’s office sent demands to cryptocurrency exchanges KuCoin and OKX to freeze a total of 3,313 BTC worth about $67 million, which are owned by Kwon through Luna Foundation Guard. Representatives of KuCoinand OKX at the time of writing had not officially commented on the reports about the blocking of Kwon’s assets.

According to Bloomberg, citing research firm CryptoQuant, the LFG wallet address was created on September 15. After its creation, a total of 3,310 BTC were moved to KuCoin and OKX. Meanwhile, back on September 14, the South Korean prosecutor’s office announced an arrest warrant for Terra coin.

Meanwhile, Do Kwon continues to assure the cryptocurrency community via Twitter that he is not hiding from law enforcement. Moreover, the founder of Terra even questioned whether he was wanted by Interpol. He noted that he still can’t find himself on the Interpol wanted list.

Earlier we reported that the head of Celsius Network, Alex Mashinsky, had resigned.

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Revolut and cryptocurrency news: Revolut received a license from the UK regulator for cryptocurrency services

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Revolut cryptocurrency wallet

Fintech broker Revolut can now provide cryptocurrency services in the UK thanks to a license from the Financial Conduct Authority (FCA). This is reported on the website of the regulator. Revolut and cryptocurrency were not previously linked. 

In fact, the broker received approval from the regulator back on Monday, September 26, but it has become known only now. Before the license, Revolut provided cryptocurrency services through a temporary permit from the FCA. In addition to Revolut, CEX.IO, Copper Technologies, GlobalBlock and Moneybrain also provided crypto services on a temporary basis.

Revolut has long been exploring the expansion of cryptocurrency-related services. According to Revolut CEO Nikolai Storonsky, the company has been exploring options to introduce new services like Revolut cryptocurrency wallet. Revolut was also looking at integrating cryptocurrency stacking. However, it remains unclear whether the broker still plans to provide such services.

Earlier we reported that the head of FTX wants to buy the assets of the bankrupt Celsius Network.

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U.S. exchange regulator fines Tether auditor company $1.5 million

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Tether full audit

Tether auditor company, Friedman LLP, was fined $1.5 million for improper services from 2017 to 2020. This was reported in a press release from the U.S. Securities and Exchange Commission (SEC).

According to the exchange regulator, the Tether auditing company didn’t properly develop audit procedures in its work for the iFresh product network. The company also didn’t exercise the necessary due diligence in auditing another unnamed company. Although the press release does not explicitly identify Tether, the issuer of the USDTstablecoin, as Tether, Friedman’s firm was Tether’s auditor from just 2017 to 2018.

Tether full audit

Earlier, a New York County court required Tether to disclose the USDT Stablecoin’s collateral and prove the assets linkage to the U.S. dollar. According to the court order, Tether is required to provide the company’s financials, income statements, cash flow statements, and so on. However, the time frame in which Tether must provide the statements is not specified.

The lawsuit is part of a legal battle between investors and Tether’s parent company, iFinex. The plaintiffs believe that Tether manipulated the cryptocurrency market by issuing unsecured USDT with the intention of artificially inflating cryptocurrency prices.

Earlier we reported that Vitalik Buterin announced the release of his book.

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