Singapore-based crypto lender Hodlnaut is on the verge of liquidation, according to court filings on November 10. The company, which also operates in Hong Kong, had previously halted withdrawals and sought protection from creditors. However, efforts to save the lender were unsuccessful, leading to the decision to liquidate the company.
Hodlnaut Liquidators To Consolidate Creditor Queries
The court filing revealed that Ms. Ee Meng Yen Angela and Mr. Aaron Loh Cheng Lee were appointed as the Interim Judicial Managers (IJMs) of Hodlnaut in August 2022.
However, on November 10, the High Court of Singapore discharged the IJM Order, and the IJMs were subsequently discharged. They were then appointed as joint and several company liquidators by the High Court of Singapore under the Winding-Up Order.
The liquidators acknowledged the substantial number of creditors, including over 17,000 platform users, and stated that responding to individual creditor queries may not be practical or cost-effective.
They assured that they would consolidate their answers to creditor queries in their updates that will be communicated to all potential creditors. The liquidators pledged to provide regular updates via email and on the official website of Hodlnaut.
Creditors Opt For Liquidation As Restructuring Plan Fails
The decision to liquidate Hodlnaut comes after key creditors of the company rejected a proposed restructuring plan. The creditors expressed their liquidation preference, stating that it would maximize the remaining assets available for distribution.
The restructuring plan faced objections due to a provision that allowed the directors responsible for Hodlnaut’s financial woes to continue managing the business. Singapore’s police force announced in November that it investigated Hodlnaut and its directors for potential cheating and fraud.
Hodlnaut’s troubles stem from its exposure to the collapse of the Terra digital-token ecosystem, spearheaded by Do Kwon. The company suffered a significant loss of nearly $190 million during the digital asset market downturn, which led to the financial crisis and subsequent protection from creditors.
The future of Hodlnaut remains uncertain, with the liquidation process set to unfold. The recent court decision rejecting the application to remove the interim judicial managers further adds to the company’s ongoing challenges.
The liquidation process will determine the distribution of remaining assets to creditors and provide further insights into the company’s financial situation. The investigation by Singapore’s police force into potential fraudulent activities will shed light on the allegations against Hodlnaut and its directors.
According to CoinGecko data, the current global cryptocurrency market cap is $1.38 trillion, reflecting a marginal decrease of -0.09% over the past 24 hours. Comparatively, there has been a substantial 55.27% market cap increase since last year.
Notably, Bitcoin (BTC) retains a dominant position with a market cap of $725 billion, accounting for 49.85% of the total crypto market. Concurrently, Stablecoins holds a market cap of $126 billion, representing an 8.7% share of the overall cryptocurrency market.
Featured image from Shutterstock, chart from TradingView.com
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments