Crypto lender Hodlnaut unveils that it had been placed under interim judicial management [IJM], by the Singapore High Court on August 30. Following the suspension of withdrawals by earlier this month.
It should be highlighted that Hodlnaut’s legal counsel appeared in a court hearing with two creditors on August 29. The judge designated Ee Meng Yen Angela and Aaron Loh Cheng Lee of EY Corporate Advisors Pte. Ltd. as interim judicial managers for Hodlnaut.
Numerous cryptocurrency projects struggled to survive the bear market. Global shockwaves were caused by the regular bankruptcy filings of various crypto lending platforms. However, it appeared that Singapore was in considerably deeper danger, as numerous platforms from the area were bankrupt.
In recent times, Hodlnaut has joined companies like Celsius, Vauld, Three Arrows Capital and others. The $500 million AUM abruptly stopped withdrawals earlier this month, blaming a downfall in the market. The company promptly requested to be placed under judicial management. The platform has apparently received approval from the court to proceed with the same.
Following its decision to halt withdrawals, Hodlnaut experienced tremendous growth in popularity. The firm has an outstanding liability of around $281 million as of just last week. In addition, the Singapore-based lender experienced a $193 million loss.
The platform wants to get advice on debt restructuring under its temporary judicial management. By doing this, the company would also be protected from all legal actions.