Hodlnaut seeks court protection in Singapore from creditors

The liquidity-strapped crypto-lending platform Hodlnaut has applied to be placed under judicial management in Singapore to stabilise its financial position.

Dear users, thank you for your patience. We would like to update you that as of 13 August 2022, Hodlnaut Pte Ltd has applied to be placed under judicial management.

Here is our full statement https://t.co/Dih47Eh0vB.

Our next update remains to be on 19 August 2022. pic.twitter.com/6AxNdTgva3

— Hodlnaut (@hodlnautdotcom) August 16, 2022

The company said it aimed to avoid forced liquidation of user assets in Bitcoin and Ethereum. Management called this ‘a suboptimal solution’.

The Hodlnaut mechanism being sought provides for the appointment of a judicial manager and a moratorium on legal claims against the firm.

“This pause will give us a breather to focus on efforts to rehabilitate the company,” Hodlnaut said.

The platform’s management noted that approving an external administrator by the court could take several months, so the company has proposed its own temporary candidate — Chi Chong Tema of Kairos Corporate Advisory.

According to the statement, the proposed specialist has 37 years of experience in corporate and financial management and has worked at various consulting firms of the Big Four.

On August 8, Hodlnaut suspended withdrawals, swaps and token deposits.

In July, the crypto lending platform Vauld announced a temporary suspension of operations, and Celsius Network filed for bankruptcy. The latter’s liabilities exceeded its assets on the balance sheet by almost $1.2 billion.

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