A series of crypto-based projects remained ineffective to maintain their position during the stringent bear market. The frequent bankruptcy filings of many crypto lending venues caused several aftereffects throughout the world. Nonetheless, Singapore appeared to be going through considerable trouble as several venues within the jurisdiction became insolvent.
Singaporean Court Grants Interim Short-Term Creditor Protection to Hodlnaut
Recently, Hodlnaut joined forces with its colleagues taking into account Three Arrows Capital, Vauld, Celsius, as well as some others. Formerly this month, the venues with up to $500M worth in assets under management suddenly terminated withdrawals referring to wild market conditions. Shortly after this, the company requested to be placed under the management of the judiciary. At present, the venue has reportedly been given the respective permission from the court.
A recent update has brought to the front that Hodlnaut disclosed having had been put under interim judicial management (IJM). A noteworthy thing here is that the respective procedure provides a kind of protection from creditors. Yesterday, the court hearing was attended by Hodlnaut’s representative law company. Apart from the lawyers, a couple of the creditors had additionally filed nominations related to the IJM candidates.
Moreover, in that hearing, the judge moved on to allocate Ey Corporate Advisors Pte. Ltd.’s Aaron Loh Cheng Lee and Ee Meng Yen Angela as the interim judicial managers of Hodlnaut. Along with this, regular updates have been made by the company to keep its community stays informed about the unique steps to be taken by it. Nonetheless, currently, the company is required to get guidance from the IJM thereof.
The company also mentioned that additional information would not be provided at this time; however, they anticipate providing additional updates after the IJMs have made their decision regarding this matter. After taking the bold step to put an end to the withdrawals, Hodlnaut enjoyed an extraordinary surge in popularity. In the previous week, it came to light that the company was saddled with an extraordinary liability that amounted to nearly 281 million dollars. In addition, the Singaporean lender suffered a loss of approximately 193 million dollars due to a shortfall.
Hodlnaut Lays off 80% of Staff to Manage Expenses
With the interim judicial management of the venue, Hodlnaut expects to seek guidance related to debt restructuring. In this way, the platform would additionally be protected from any kind of court proceedings. It was 13th August 2022 when the company originally applied for judicial management, while pursuing short-term protection from the emergence of the legal claims against it. In the previous week, 80% of Hodlnaut’s staff has been terminated to minimize the expenses.
Importantly, the cryptocurrency lender has some undecided proceedings with the Attorney General as well as the police department of Singapore. In this matter, the crypto lender asserted that they took the actions that were believed by them as the best moves to favor the company as well as the consumers thereof. The overall market statistics as well as the frequently bankrupting crypto platforms are bothering the authorities to focus on regulation and customer protection.
