Key Takeaways:
Altura said a bank temporarily restricted an account holding £16.4 million, blocking the DeFi yield protocol from completing its final round of user redemptions.
"The situation is entirely outside of our control, and there is no further action we can take until we receive an update from the bank," Altura said in a post on X on July 28.
The funds had returned from Altura's real-world asset strategies and were due to be transferred to an over-the-counter counterparty for conversion into USDT when the restriction was imposed. The protocol had recovered $14.97 million by July 15, with $6.95 million still outstanding, and reduced the remaining balance to about $1 million by July 23, according to updates from Chief Executive Officer Ranveer Arora. Altura's Proof of Reserves dashboard had classified the bank balance as cash recovered from the unwind and awaiting conversion into USDT.
The restriction leaves about £16.4 million inaccessible while the unidentified bank completes an internal review, with no deadline provided for its conclusion. Altura previously targeted full redemptions by July 31 after unwinding most of its portfolio, which peaked at roughly $39 million in total value locked on HyperEVM, according to DefiLlama.
The wind-down followed a redemption rush in June that processed more than 8.5 million USDT in withdrawals over 24 hours. The pressure arrived alongside the depegging of MainStreet's msUSD stablecoin, though Altura said it held no exposure to MainStreet or its strategies. Arora attributed the decision to close the vault to "sustained withdrawal demand and current market sentiment."
Funds from the unwind of Altura's Inessa allocation were transferred through JPMorgan Chase into the protocol's bank account before the restriction, the company said. Altura attached a mobile-banking screenshot showing the restriction notice but did not identify the bank or disclose what triggered the review. The protocol's remaining positions included stablecoins held through OKX and Cobo, an Ethereum allocation and capital connected to Morpho.
Altura has not issued a revised redemption date. The protocol said it paused activity in its community chat groups to focus on institutional outreach, with updates to be provided through Telegram, Discord and X.
This article is for informational purposes only and does not constitute investment advice.
