25 days ago 1 min read

Iron Bank Debt Crisis Solution Proposed by Alpha Homora

alpha homora-iron bank-defi-ethereum

A remedy to the bad debt dispute with Iron Bank, a lending platform, has been put forth by Alpha Homora (AH), a DeFi project.

Alpha Homora requested that Iron Bank restore customer funds that are not on Ethereum in an open letter. Also, Iron Bank should send users around $11 million, which is the net bad debt of the money placed by users, minus interest accrued. Within one week after Iron Bank's acceptance of the proposed arrangement, the community will be informed of the next steps for the remaining $30 million.

Iron Bank had previously encouraged AH to settle its outstanding debts, and as a result, on March 1, it suspended Alpha Homora's loan accounts. The $30 million in bad debt was acquired as a result of the February 2021 malicious use of Alpha Homora. Iron Bank and Alpha Homora had previously spoken in an effort to come up with a workable solution, but Iron Bank asserted that Alpha Homora had broken the conditions of its repayment promise.

It should be mentioned that this news has not been checked for plagiarism and does not correspond to any current sources. If the information given is genuine, it does, however, show the persistent problems and difficulties in the DeFi sector, particularly with regard to lending and borrowing. Alpha Homora's approach may be able to settle the conflict and prevent additional legal action, but it is unclear whether Iron Bank will accept the terms.

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