Hodlnaut Faces Liquidation Following Winding-Up Order Amidst Financial Turbulence
Singapore-based cryptocurrency lender Hodlnaut is set to undergo liquidation, as confirmed by the company's former interim judicial managers.
Because Bitcoin
November 11, 2023
A recent CoinDesk report highlights that Singapore-based cryptocurrency lender Hodlnaut is set to undergo liquidation, as confirmed by the company's former interim judicial managers, Aaron Lee and Angela Ee. The decision comes after a winding-up order was filed on November 10th with the High Court of Singapore. Hodlnaut creditors, numbering over 17,000, will receive ongoing updates from the liquidators.
Hodlnaut faced financial turbulence after suffering approximately $189 million in losses attributed to its exposure to the Terra ecosystem, which collapsed in May 2022. Additionally, the lender had $13.3 million worth of cryptocurrency locked on FTX before the exchange froze withdrawals and eventually declared bankruptcy in November of the previous year.
Last August, Hodlnaut sought creditor protection in the wake of these challenges. Despite this, creditors rejected a proposed restructuring plan earlier this year, opting for liquidation, which they believed would better serve their interests.
Aaron Lee and Angela Ee have been appointed as liquidators for Hodlnaut, overseeing the winding-up process under the Insolvency, Restructuring, and Dissolution Act of 2018. The appointment signifies a crucial step in the resolution of Hodlnaut's financial affairs as the liquidation process unfolds. Hodlnaut's creditors will closely monitor developments as the company navigates this significant transition.
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