Crypto Lender Hodlnaut Files Application for Creditor Protection in Singapore

Hodlnaut is the latest firm in a long line of crypto companies that have been stung by the recent market downturn.

By Shomik Sen Bhattacharjee | Updated: 17 August 2022 19:37 IST

Photo Credit: Hodlnaut

Hodlnaut is a Singapore-based firm and was founded in 2019

Highlights

Hodlnaut hopes being protected under judicial management
The entire process is expected to take a few months
Hodlnaut will provide an update on August 19

Crypto lender Hodlnaut has announced that it has filed for protection against creditors in Singapore in a bid to solve its liquidity issues. According to the announcement, Hodlnaut filed the application with the Singapore High Court on August 13, just days after the company halted withdrawals from its platform, to be placed under judicial management. The latest application filed by the company will temporarily protect it from any legal claims and proceedings against it by creditors. Hodlnaut also revealed that it is currently working with attorneys to avoid being forced to liquidate its assets at its present lower price.

"We are aiming to avoid a forced liquidation of our assets as it is a suboptimal solution that will require us to sell our users' cryptocurrencies such as BTC, ETH, and WBTC at these current depressed asset prices," the announcement read.

"This pause will provide us with the breathing space to focus our efforts on the recovery plan to rehabilitate the company," the statement added.

Samsung Wins Patent for a Tri-Fold Smartphone With Specialised Barrier Layer for Improved Durability

The Singapore High Court will appoint a judicial manager who will be an independent officer of the court to manage the firm as part of its judicial management process.

The firm has, however, applied to appoint a former partner at Deloitte Southeast Asia and the current director of Kairos Corporate Advisory, Chee Chong Tam, to take on the role of judicial manager. Chong Tam is also the company's option for the interim judicial manager while the Singapore courts review the firm's application.

Hodlnaut is expected to provide its next update on August 19 and hopes that its latest action will give it some time to devise a recovery plan to avoid liquidating customer assets.

Coinbase to Temporarily Halt Ethereum Transactions During 'The Merge'

The Singapore-based firm is the latest name on an already long list of crypto companies that have had financial issues this year due to the recent market downturn. Celsius, Voyager, and BlockFi are other firms stung by the recent market crash.

Do the Galaxy Z Fold 4 and Z Flip 4 offer enough over last year's models? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.