Another Bankruptcy Danger Arose in the Cryptocurrency Industry! Herald of a New Collapse?

based in South Korea cryptocurrency investment firm Blockwater Technologiesis a decentralized lending protocol. TrueFiHe could not repay the 3.4 million dollar loan he received from .

In a statement, TrueFi said that South Korean blockchain investment firm Blockwater Technologies delayed payment on a loan it received from TrueFi, a decentralized lending protocol.

Cryptocurrency Investment Firm Blockwater Technologies Fails to Pay DeFi Loan, Defaults

According to the description, TrueFi Binance USD (BUSD) After failing to pay off a $3.4 million stablecoin loan, it sent a late notice to Blockwater.

Blockwater’s bankruptcy seems to be the latest example of the crypto industry’s bankruptcy crisis.

This year’s decline in crypto markets, exacerbated by the collapse of Terra Blockchain, has led to numerous high-profits including hedge fund Three Arrows Capital (3AC), crypto lender Celsius Network, digital asset broker Voyager Digital and crypto mining data center operator Compute North. led to the bankruptcy of the crypto firm.

Blockwater’s default comes after TrueFi and Blockwater restructured the loan and extended the payment period in August.

Blockwater managed to repay $654,000 of its outstanding debt after restructuring efforts. However, he could not make the remaining payment. The remaining debt amounts to approximately $3 million.

Roshan Daria, head of lending at ArchBlock, which manages relationships between lenders and borrowers on the TrueFi protocol, said in a statement:

“While we always prefer to seek an out-of-court settlement with distressed borrowers, in some cases an administrative action is the best option to preserve value for shareholders.”

According to the statement, TrueFi continues to actively negotiate with Blockwater. It was also stated that Blockwater’s bankruptcy did not affect the protocol’s other lending pools.

It is not investment advice.