An acting receiver report has found that the Hong Kong branch of cryptocurrency lender Hodlnaut lost nearly $190 million during the Terra/Luna digital token crash in May 2022.

According to the report, Hodlnaut directors had downplayed the group’s range of exposure to digital tokens.

The report said that “it appears that directors had downplayed the extent of the group’s exposure to Terra/Luna both in the lead-up to and after the Terra/Luna collapse in May 2022.”

The report is the first to be made public since a Singapore court in August granted Holdnaut protection from creditors to present a recovery plan.

The company’s Hong Kong branch posted a loss after unloading the stable coin while its peg to the dollar frayed.

TerraUSD and runaway Luna Do Kwon suffered a $60 billion loss in May. The collapse of the stable coin and sister token was due to a loss of confidence in the project, which led to exacerbating this year’s crypto downturn.

The report further added that company directors told the Singapore police that they had converted their digital assets to TerraUSD. The information was delivered to the police through a letter dated July 21.

Hodlnaut operates from Singapore and Hong Kong. The company halted withdrawals in August along with other companies such as Celsius Network after crypto platforms globally suffered from falling crypto prices and tightening monetary policies.

The firm cited “difficult market conditions” as the reason that triggered the move.

The crypto lender also withdrew its application for a license from the Monetary Authority of Singapore (MAS) to offer digital token payment services. Hodlnaut received approval in principle from the Central Bank in March.

According to the report, some employees withdrew around S$776,292 between July and August.

No further information about the loss and the deal could be obtained, as more than 1,000 documents were removed from Hodlnaut’s Google workspace.

The Singapore-based company also wants to focus on stabilizing liquidity and preserving client assets while working on a long-term solution.

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