Eight days ago, crypto lender Hodlnaut announced that its platform has suspended withdrawals after citing unstable market conditions. This week, the company said it is seeking judicial control aimed at “providing the best opportunity for recovery.”
Hodlnaut Updates Customers – Crypto Lender Asks Singapore High Court for Judicial Management
Crypto lender Hodlnaut is seeking help from the court so that the platform can “avoid forced liquidation” of the company’s assets. Last week, on August 8, 2022, the crypto startup suspended withdrawals, noting that the company is “actively working on a recovery plan. “Hodlnaut believes that utilizing court-appointed administration is the best move, and on August 13, 2022, Hodlnaut filed a petition with the Singapore High Court registered judicial administration.
Under Singapore law, companies in financial distress can recover their losses with the help of judicial management. The scheme also suspends claims and legal proceedings against Hodlnaut. Hodlnaut explained Tuesday that “this moratorium will give us some breathing room to focus on the recovery plan to rebuild the company.” Hodlnaut has appointed Tam Chee Chong of Kairos Corporate Advisory Pte Ltd. as interim judicial manager. He hopes to appoint him.
However, despite the company’s application to register as a court-appointed administrator, the court has not processed the application, and Hodlnaut said the situation could change. The company plans to go public on August 19 to “provide a more substantive update on the court-appointed administrator process. “Hodlnaut’s withdrawal suspension and financial problems follow those of companies like Celsius, Voyager Digital,Babel Finance,and Vauld, which has likewise frozen its withdrawal.
Hodlnaut said the timeframe for obtaining judicial control from the Singapore High Court could take up to several months. At the bottom of the blog post is a collection of frequently asked questions, one of which asks if all of the client’s funds have been lost. Hoddle Note responds, “No, Hoddle Note is currently facing difficult financial times, but we have not lost all of our clients’ assets. Currently, all withdrawals have been suspended and no users will be given priority for withdrawals.” The crypto lender’s blog post concludes with the following.
We understand the anxiety this news has caused our users and we will endeavor to provide more frequent updates going forward.
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