A South Korean investment company received a notice of default on a loan it took on TrueFi, a collateral-free lending platform. The default was non-payment of a due date. TrueFi stated that it had collected approximately $645,000 so far and that the remainder of the debt was estimated at $2.96million at the time.
According to TrueFi’s blog, Blockwater, a South Korean investment company, failed to repay the $3.4 million loan it received from TrueFi uncollateralized lending provider TrueFi.
Blockwater was issued a “notice to default” Oct. 6, after it failed to pay a scheduled payment on a loan taken in the BUSD stablecoin. On-chain data.
TrueFi stated that it had collected $645,000 in eight payments and that the outstanding debt was $2.96million at the time of default. According to the lender, TrueFi’s \$3.4 million loan default is approximately 2% of its Total Value Outstanding.
However, the credit team continues to be proactive and vigilant with existing borrowers to ensure compliance and reporting requests are promptly met in light of the market conditions.
The original loan was for 90 days and ended in the first week of August. In negotiations between the parties, the $3.4 million loan was later restructured. The loan maturity now extends through October, with a weekly repayment schedule.
TrueFi allows crypto players to take out loans without collateral. TrueFi borrowers are institutions that must pass Know Your Customer (KYC), in order to open a borrower pool.
Blockwater’s default in May is another example of the financial difficulties many central crypto entities and lenders are facing in 2022.
Three Arrows Capital and Celsius Network, two of the largest institutional players in crypto, have defaulted upon unsecured loans since May. This has triggered financial problems across the crypto space.