Singapore High Court Grants Judicial Management To Hodlnaut

Hodlnaut, the Singapore-based platform for crypto lending, has been granted judicial management by the Singapore High Court, said a Hodlaunt press release. The same was confirmed in a tweet by the company.

During a hearing scheduled on August 29, 2022, the Singapore High Court Judge appointed Ee Meng Yen Angela and Aaron Loh Cheng Lee, care of EY Corporate Advisors Pte. Ltd., as the Interim Judicial Managers.

Judicial management is a method of debt restructuring where an independent judicial manager is appointed to manage the affairs, business, and property of a company under financial distress, as explained by Singapore Legal Advice. The company is also temporarily shielded from legal proceedings by third parties, giving it the opportunity to rehabilitate.

While talking to international media, the company said, “We will not be able to provide further information at this juncture, but hope to provide further updates once our IJMs (Interim Judicial Managers) determine it necessary to do so.”

Hodlnaut Halted All Transactions Early This Month

Earlier this month, Hodlnaut announced that they are halting all transactions immediately while suspending withdrawals, swaps, and deposits to focus on stabilizing its liquidity and preserving the company’s assets. Furthermore, Hodlnaut also announced they are no longer operating in Singapore, as the Monetary Authority of Singapore (MAS) pulled their application.

Hodlnaut also dramatically laid off 80% of the staff. The company said it had laid off about 40 employees while also disclosing an investigation by the Singapore police. This move came ten days after the suspension of all deposits and withdrawals.

The company then went on to request the Court for Judicial Management Application.

Recently, the Monetary Authority of Singapore (MAS) issued strong warnings against retail investments in cryptocurrencies and has been taking increasingly stronger measures to restrict retail access to cryptocurrencies.

On the Flipside

  • The Singapore High Court Ruling has set a precedent with this case as the crypto companies going through similar legal processes watch on.

Why You Should Care

The Singapore High Court Ruling gives a breather to Hodlnaut, as the company suffered a hit from the recent market downturn.

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

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Author

Akriti is a Zurich-based reporter, focused on the political, regulatory, and legislative developments around crypto. She is a business journalist with over six years of experience working as a correspondent for organizations like Channel NewsAsia and Bloomberg TV India. In that time, Akriti has covered news in the finance, pharma, and state sectors.