Crypto lender TrueFi issues virtual notice to Blockwater for over $3.4 million loan

Lending firm DeFi TrueFi has issued a virtual notice to South Korea-based Blockwater Technologies over the latter’s failure to repay an unsecured $3.4 million loan.

The notice was released on October 6, although TrueFi did not provide this information general Even today. The US$3.4 million loan was originally granted on May 7 earlier this year.

Debt restructuring already

According to the data of the official TrueFi website, loan The period was 90 days and ends on August 5. Parties reach out-of-court settlement for debt restructuring and TrueFi most dangerous Same thing on August 8.

As per the amendment, the maturity was extended until the end of October 2022, but this facility came with a higher interest rate of 15%.

It is interesting to note that this announcement marks the first time that a loan granted by TrueFi has failed.

TrueFi has now decided to issue a default notice, due to the uncertainty associated with unsecured loans in this environment.

“A potential court-supervised administrative action would lead to a better outcome for stakeholders given the complexities surrounding the sudden bankruptcy,” the lender said in its press release.

TrueFi clarified that the Blockwater default will not affect lenders in the USDC, USDT and TUSD stablecoin lending groups. TrueFi’s capital market portfolios will remain the same.

The debt owed by Blockwater represents 2% of the total value owed to TrueFi. The company has made payments totaling $645.405 so far.

TrueFi and its customers

TrueFi has made nearly $1.7 billion in unsecured loans to date. $1.53 billion was repaid to the company, along with total interest accrued of $35.86 million.

TrueFi is the leading on-chain credit protocol and counts many common names in it customersIncluding Alameda Research, Amber Group, and some unfortunate companies such as Celsius Network and Babel Finance.

The lender’s currently largest active loan facility has been extended to Wintermute Trading. It is a debt of $92 million with an interest rate of 8.73% and is due for repayment on October 15th.

Winter is over News Last month, it fell victim to a hack that wiped out $160 million from the platform.

TrueFi currently has 8 other active loans with a combined outstanding debt of over $24 million.

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