Crypto Investment Firm Blockwater Defaults on $3.4M Loan from TrueFi
TrueFi, a decentralized lending and borrowing protocol, announced on Sunday that it has issued a notice of default to South Korea-based digital asset investment firm Blockwater Technologies.
TrueFi said in a blog post that Blockwater failed to make a scheduled payment on its $3.4 million BUSD loan. The firm has so far repaid $645,405, with $2,967,458 remaining due at the time of the default.
TrueFi $BUSD Pool Update:
— TrueFi (@TrueFiDAO) October 9, 2022
TrueFi issued a notice of default to Blockwater for non-payment on its $3.4m restructured loan
NWH/Invictus entered a Cayman voluntary liquidation proceeding and may not repay its $1.0m loan due 10/30
Bastion has repaid its $10m loan due 10/4 in full
TrueFi said it had amended the loan to increase the borrowing rate and extend maturity, but ultimately decided “a court-supervised administrative proceeding would lead to a better outcome for stakeholders given the complexity around the sudden insolvency.”
TrueFi is a lending and borrowing protocol that offers uncollateralized loans. The protocol has originated over $1.7 billion in unsecured loans and is currently facilitating almost $140 million of active lending across ten loans.
The Bear That Keeps on Taking
Blockwater is one of the numerous victims of the bear market. Celsius, a once popular crypto lender managing billions, filed for bankruptcy this summer. The firm is now facing multiple lawsuits from its users and investors for reckless investment strategies and other shady practices.
Voyager Digital, another crypto lender, also went bust this year. Three Arrows Capital, a now-defunct crypto hedge fund, imploded following the Terra Luna implosion, another high-profile bust. Their founders are now on the run from law enforcement.
Despite that, TrueFi said that “borrower demand remains high and continues to outpace available capital” and that its loan book remains “healthy and active.”
On the Flipside
- Blockwater hasn’t issued any official statements.
Why You Should Care
Uncollateralized crypto lending is becoming increasingly popular. However, high-profile defaults or outright implosions are good reminders that these types of unsecured loans entail numerous risks.
Read more about the most recent turn of events in the Celsius saga:
Co-Founder of Bankrupt Crypto Lender Celsius (CEL) Daniel Leon Resigns
Read more about Three Arrows Capital’s latest moves:
Three Arrows Capital (3AC) Moves Million Dollar-Valued NFTs to New Wallet
Read more: https://dailycoin.com/crypto-investment-firm-blockwater-defaults-on-3-4m-loan-from-truefi/
Text source: DailyCoin.com
