Unsecured lending protocol True Fi has issued Notice of Default To Blockwater Technologies, which failed to repay its $3.4 million loan commitment.
According to Brockwaters borrower profile, The venture capital firm has borrowed approximately $16.8 million from TrueFi in 2021. We have repaid up to $13.4 million before seeking to restructure the loan in August 2022.
As a result, TrueFi has agreed to: Expand Blockwater loan repayment after August. Since then, Blockwater has only paid off $645,405 in outstanding debt, leaving him about $2.9 million behind schedule.
TrueFi is in discussions with Blockwater and its advisors to recover the remaining funds, but will also be involved in legal proceedings to ensure the best possible outcome for shareholders.
“Administrative proceedings, which may be overseen by courts, will lead to better outcomes for stakeholders, given the complexities surrounding sudden bankruptcies.”
TrueFi added that Blockwater’s loan default will not affect other lending pools under its control. So far, TrueFi has issued about $1.7 billion in loans and collected about $1.5 billion in repayments.
TrueFi’s Growing List of Unpaid Loans
Blockwater’s $3.4 million loan default represents just 2% of TrueFi’s total loan balance.
True Fi $BUSD Pool update:
TrueFi Issues Notice of Default to Blockwater for Unpaid $3.4M Restructuring Loan
NWH/Invictus Enters Cayman Voluntary Liquidation Proceedings, May Not Pay Back $1M Loan Due 10/30
Bastion paid off $10 million loan due 10/4
— TrueFi (@TrueFiDAO) October 9, 2022
TrueFi may risk not recovering about $1 million owed to Invictus Capital, which recently filed for bankruptcy.
TrueFi has also been exposed to the recent Wintermute hack. This owes about $92 million of his $275.6 million borrowed.
TrueFi said it offers full protection to lenders amid concerns that more borrowers may default on their loans as the bear market spills over. TrueFi SAFUs.
All bad debts will be transferred to the SAFU smart contract to repay the lender in TrustToken (TRU) while reducing up to 10% of the borrower’s staked TRU tokens.
