DeFi-protocol TrueFi has issued a notice of default on its Blockwater project
The cryptocurrency investment company failed to repay $3.4 million in debt
Decentralized lending protocol TrueFi has issued a notice of default for crypto investment firm Blockwater Technologies. It failed to make a payment on a $3.4 million loan to BUSD, the TrueFi team said in a blog post.
TrueFi's cryptocurrency has made more than $1.7 billion in loans, currently servicing 10 loans worth $140 million, the article said. Debt from South Korea's Blockwater project is about 2% of that amount, and the TrueFi team is actively restructuring to reimburse affected BUSD pool lenders.
According to the statement, TrueFi continues to discuss the debt and its repayment with Blockwater and said the firm's insolvency does not affect other loan pools of record in USDT, USDC and TUSD steblecoins.
The downturn in the cryptocurrency market this year has resulted in many projects failing to pay their obligations. For example, the liabilities of one of the most famous bankrupt cryptocurrency lenders, Celsius, exceed its assets by $2.85 billion.
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