TrueFi issues default notice to block more than $3.4 million loan

It looks like the ongoing bear market has killed another victim.

decentralized financeDeFiThe TrueFi Project He said It has issued a virtual notice to South Korean project company Blockwater Technologies for missing its scheduled payment $3.4 Million Binance USD loan (BUSD).

BUSD is a peg to the dollar stablecoin Issued by cryptocurrency exchange Binance And Paxos.

TrueFi is a lending and borrowing protocol that allows users to opt out Unsecured LoansA unique feature in the crypto world.

Most loans in the industry are over-secured, which means users have to put up more than 100% of the capital they are willing to borrow.

The platform loans are offered after a rigorous KYC preparation process and credit check, just like traditional financial institutions. Alameda Research, the Sam Bankman-Fried trading company, is another notable company that has used TrueFi to lend money.

Although the directors of TrueFi and Blockwater have begun an “exhaustive out-of-court exercise” to rectify the default, DeFi The platform finally chose a “court-supervised” administration.

This option, he said, “would lead to a better outcome for stakeholders,” according to s Blog Posts.

Blockwater shortening joins bear market victims

The Blockwater default is the latest example of crypto companies defaulting on loans — or worse yet, filing for bankruptcy.

The most notable bankruptcy to date has been crypto lender Celsius. The company, which previously offered double-digit interest rates on several cryptocurrencies, archived For Chapter 11 bankruptcy in July this year.

As part of the trial, it was recently revealed that the company Former CEO Alex Mashinksy withdrew $10 million from the company’s accounts before freezing users’ funds.

This information was gathered through an astonishing 14,500 page court document which also included Key identification information Each user has previously interacted with a Celsius degree.

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