Singapore-based crypto lender Hodlnaut has been dealt another blow on its path to recovery after it emerged that it held SGD 18.3 ($13.3M) million worth of crypto on FTX, the crypto exchange that halted withdrawals earlier this week.
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.
CORRECTION (Nov. 11, 02:34 UTC): Updates headline, body with SGD figures instead of USD, and percentage of assets.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.