Lending Platform Hodlnaut May Have Misappropriated Customer Funds to Anchor and Caused Huge Losses

Terra researcher FatMan tweeted that an anonymous account sent him a message proving that lending platform Hodlnaut was holding a large amount of $UST when it was depegged, and upon verification confirmed that Hodlnaut had been misrepresenting its yield sources and risk profile. Hodlnaut began transferring large amounts of funds to Anchor in January of this year without informing their customers, but Hodlnaut only listed $UST in April and claimed they were generating revenue. Before they listed $UST, they had already moved millions of dollars to Anchor (and were paying better rates than their competitors). During the $UST depegged period, Hodlnaut started providing bETH collateral to Anchor and borrow millions in $UST to send it to Binance. They also begin burning $UST for $LUNA and sending it to exchanges, presumably to arbitrage the huge price difference at the time. Hodlnaut then sold some $UST as low as $0.40, degen shorted through bETH cross-margining, had huge, risky shorts on exchanges in the best case scenario, they even re-entered Anchor after the collapse (small size). It is said that Hodlnaut's own spinoff entity may have lost millions trading $UST.