Singapore-based crypto finance company Hodlnaut was placed directly under interim judicial management, a kind of creditor protection program, through the Singapore court on August. 29.
A legal court orders came three days after Hodlnaut froze all buying and selling activities and withdrawals on its platform citing a liquidity crisis. Within an official blog publish on August. 30, the crypto lending platform notified its users that Ee Meng Yen Angela and Aaron Loh Cheng Lee, proper care of EY Corporate Advisors, were hired as interim judicial managers. Your blog publish read:
“The Court has delivered judgment on 29 August 2022, and is proven that Hodlnaut is going to be placed directly under Interim Judicial Management.”
The crypto loan provider searched for judicial management to prevent forced liquidations within the bear market. The stated creditor protection program under Singapore law enables financially troubled firms to rehabilitate themselves. Under this law, a legal court appoints a police officer known as the judicial manager who gets control the charge in the company’s director for the moment.
As Cointelegraph reported earlier this year, Hodlnaut cut 80% of their workforce before you apply for judicial management. The firm wishes to make use of the judicial management period to revive its asset-to-debt ratio to at least one:1 to permit users the opportunity to withdraw their initial cryptocurrency deposits.
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The crypto loan provider informed earlier that they are going through the choice to allow users to withdraw their initial deposits with interest accrued entirely before closing their accounts, that is now susceptible to your application by recently hired judicial managers
Hodlnaut is a among many crypto lending businesses that fell prey towards the crypto contagion brought on by the undoing from the now-defunct TerraUSD (UST) algorithmic stablecoin. The implosion of UST brought towards the downfall of the $40 billion Terra ecosystem, and lots of crypto lending firms with contact with UST fell eventually.
