In its official blog, Algorand Foundation, the non-profit organization behind Algorand, announced that it has a $35 million USDC exposure to Hodlnaut. Hodlnaut was placed under Interim Judicial Management after it suspended withdrawals on August 8, 2022.
The Foundation revealed that these exposure funds were surplus to day-to-day requirements and are less than 3% of the Foundation’s assets. As a result of the exposure fund, the community does not anticipate operational or liquidity issues.
The Foundation is currently taking all legal cautions and will continue to do so to maximize asset recovery.
“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” reads the announcement.
The Foundation also revealed that the Singapore High Court appointed Algorand’s nominees, Ms. Angela Ee and Mr. Aaron Loh of EY Corporate Advisors Pte Ltd, to act as the interim judicial managers of Hodlnaut.
The action was taken to identify, preserve and protect Hodlnaut’s assets until further court action begins.
Also Read: Hodlnaut Pauses Withdrawals, Token Swap and Deposits
