Ardana, which claimed to be building a stablecoin platform on the Cardano network, is reported to have incurred losses for its investors brought by ill-advised cryptocurrency investments, not from running out of funds as previously claimed.

According to findings by Web3 risk management firm Xerberus, approximately 80% of Ardana's assets were transferred to a personal wallet controlled by a senior team member.

Subsequently, this individual executed a series of imprudent cryptocurrency investments, leading to an estimated loss of approximately $4 million.

The funds were first obscured by sending them through centralised exchanges before landing in the wallet.

It is worth noting that Ardana had successfully raised $10 million in investor capital but suspended its operations in November 2022, citing concerns related to funding and project timeline uncertainty.