Crypto Lender Hodlnaut Enters Liquidation in Singapore

Troubled crypto lender Hodlnaut has been ordered by the High Court of Singapore to undergo liquidation.

Giant lion roaring DEFI in Singapore.
Created by Kornelija Poderskytฤ— from DailyCoin
  • Embattled crypto lender Hodlnaut wonโ€™t be sold as the founders proposed.
  • The company will undergo a new bankruptcy exit plan.
  • This follows an order by the High Court.

Singapore-based defunct crypto lender Hodlnaut Pte has initiated the liquidation process of its assets with a winding-up order filed at the High Court.

The development comes after Hodlnautโ€™s creditors rejected a proposed restructuring plan on January 11 and opted to liquidate the company. According to the creditors, this option would allow investors to maximize returns on the companyโ€™s surviving assets.

Court Orders Hodlnaut Liquidation

In a letter addressed to creditors on November 10, Hodlnautโ€™s Interim Judicial Managers (IJMs) announced that the crypto lender would liquidate its assets following a wind-up order issued against it by Justice Aedit Abdullah of the High Court of Singapore.

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โ€œAaron Loh Cheng Lee and Ee Meng Yen Angela, both care of EY Corporate Advisors Pte Ltd, at One Raffles Quay, North Tower Level 18, Singapore 048583, be appointed as the joint and several liquidators of the Company,โ€ the court ruled.

The High Court appointed Cheng Lee and Yen Angela as Hodlnautโ€™s IJMs in August 2022 to oversee a creditor protection process following the Terra stablecoin collapse, which saw the company lose $160 million.

After the appointment of the IJMs and withdrawal freezes on Hodlnautโ€™s platform, the company faced another setback in November when Sam Bankman-Friedโ€™s crypto exchange FTX fell into bankruptcy. According to the firm, it had over 500 Bitcoin (BTC) stuck in FTX.

As creditors finally breathed relief after months of waiting and negotiations, Hodlnautโ€™s founders might not be pleased with todayโ€™s court verdict, as they preferred a different bankruptcy exit plan.

Founders Wanted to Sell

On February 28, Hodlnautโ€™s IJMs released an affidavit by the companyโ€™s co-founder, Simon Lee, stating that selling the crypto lending platform was better for creditors than liquidation.

A day later, a Bloomberg report captured Lee stating that he and his co-founding partner Zhu Juntao had approached โ€œpotential white knight investorsโ€ for an acquisition deal to onboard Hodlnaut users to crypto platforms owned by or affiliated with the new investors.

Read more about the afflicted Hodlnautโ€™s acquisition by 3AC:
3ACโ€™s OPNX Acquiring Hodlnaut in Singapore Sets Off Backlash

Stay updated on Celsius Networkโ€™s bankruptcy exit plan:
$2B Celsius Reimbursement Finally Allocated for Creditors

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Brian Danga

Brian Danga is a crypto reporter at DailyCoin covering breaking news. Brian has minor holdings in Bitcoin and Ethereum.

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