TrueFi, a decentralized lending platform, announced in a statement on Sunday that Blockwater Technologies, a South Korean blockchain investment company, had defaulted on a loan. Notice Issued By Blockwater Technologies The declaration claimed that TrueFi gave Blockwater a notice on October 6 after it defaulted on a $3.4 million loan in Binance USD (BUSD) stablecoin. The TrueFi credit group conducted a thorough out-of-court work with the Blockwater founders, including a loan modification to raise the loan rates and lengthen the tenure. Due to the difficulty of the unexpected insolvency, it was eventually decided that a possible court-supervised administrative action would result in a better conclusion for stakeholders. Turmoils In The Crypto World The failure of Blockwater appears to be the most recent illustration of the insolvency issue in the cryptocurrency sector. Crypto markets have experienced a dramatic decline this year. The collapse of the Terra blockchain is a prime example. Many well-known cryptocurrency firms filed for bankruptcy following the crash, like hedge fund Three Arrows Capital (3AC), crypto lender Celsius Network, digital asset broker Voyager Digital, and crypto-mining data center operator Compute North. Following a loan restructuring and payment extension in August between TrueFi and Blockwater Technologies, the company defaulted on its obligations. After the restructuring attempts, Blockwater managed to ...
