TrueFi, a decentralized lending platform, <a href="https://blog.truefi.io/truefi-issues-notice-of-default-to-blockwater-technologies-19088a9b2570" target="_blank" rel="nofollow noopener">announced in a statement</a> on Sunday that Blockwater Technologies, a South Korean blockchain investment company, had defaulted on a loan.
<h2>Notice Issued By Blockwater Technologies</h2>
The declaration claimed that TrueFi gave Blockwater a notice on October 6 after it defaulted on a $3.4 million loan in <a href="https://www.cryptoknowmics.com/news/binance-completes-integration-of-wax-waxp-and-busd" target="_blank" rel="noopener">Binance USD (BUSD)</a> 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.
<h2>Turmoils In The Crypto World</h2>
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 <a href="https://www.cryptoknowmics.com/news/nft-collection-of-three-arrows-capital-to-be-liquidated" target="_blank" rel="noopener">Three Arrows Capital (3AC)</a>, crypto lender <a href="https://www.cryptoknowmics.com/news/latest-filings-of-celsius-reveal-thousands-of-customers-details" target="_blank" rel="noopener">Celsius Network</a>, digital asset broker <a href="https://www.cryptoknowmics.com/news/ftx-to-acquire-voyager-assets-following-successful-auction" target="_blank" rel="noopener">Voyager Digital</a>, 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 pay off $654,000 of its remaining debt but subsequently missed a payment. The remaining debt is close to $3 million.

According to the declaration in the loan protocol, TrueFi concluded that considering the difficulty underlying the unexpected insolvency, a prospective court-supervised administrative action would result in a favorable outcome for stakeholders.
<h2>Out-of-Court Settlement With Borrowers</h2>
Roshan Daria oversees interactions between borrowers and lenders on the TrueFi protocol. He stated that the company has always preferred to "pursue an out-of-court solution." However, a distressed borrower may occasionally need an "administrative proceeding to preserve value for stakeholders."

The statement claimed that TrueFi and Blockwater remain in contact, and Blackwater's bankruptcy would not affect the protocol's other loan pools.

Crypto Investment Firm Blockwater Technologies Defaults on DeFi Loan

TrueFi, a decentralized lending platform, announced that Blockwater Technologies, a South Korean blockchain investment company, had defaulted on a loan.

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Crypto Investment Firm Blockwater Technologies Defaults on DeFi Loan

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