Crypto lender Hodlnaut’s days seem like numbered after the High Court of Singapore ended judicial administration and ordered its liquidation. Users’ funds have been frozen since August 2022.
Former Hodlnaut interim judicial supervisor (IJM) Aaron Loh Cheng Lee announced in a letter dated Nov. 10 and posted on the web site of EY that he and fellow IJM Ee Meng Yen Angela have been discharged from that place and appointed liquidators.
The liquidation choice was made by the Singaporean courtroom in a winding-up order in response to their software. According to an attachment to Lee’s letter, that call is sealed in the mean time.
Singapore-based Hodlnaut suspended deposits and withdrawals and concurrently withdrew its licensing software earlier than the Monetary Authority of Singapore on Aug. 8, 2022. The firm attributed its choice to “recent market conditions.” According to Lee’s letter, Hodlnaut’s collectors embody 17,000 customers. Major collectors included Samtrade Custodian, S.A.M. Fintech and the Algorand Foundation.
Related: Algorand Foundation outlines $35M exposure to crypto lender Hodlnaut
Hodlnaut was apparently a sufferer of the systemic turmoil that struck the business with the collapse of the Terra ecosystem and Three Arrows Capital (3AC). It didn’t have publicity to 3AC, however reportedly held round $150 million in Terra’s stablecoin, since renamed TerraUSD Classic (USTC), at a while. It later took another financial hit with the collapse of FTX.
The worth of FLEX token — the proposed settlement digital forex for Hodlnaut’s $30 million buyout — has plummeted 90% because the supply was made in early August. https://t.co/PDgFgiKp4P
— Cointelegraph (@Cointelegraph) September 19, 2023
Hodlnaut avoided forced liquidation by making use of for and receiving court-appointed IJMs. It subsequently received creditor protection and cut its staff by 80%. It additionally reportedly faced a police investigation of a delay in its reporting of its USTC holdings.
Creditors rejected a restructuring plan in January and voted overwhelmingly for liquidation in April. OPNX, based by former 3AC founders Su Zhu and Kyle Davies, amongst others, offered $30 million worth of its FLEX token for a 75% share in Hodlnaut in August 2023, however that supply was rejected by the IJMs the next month after the worth of FLEX plummeted by 90%.
A U.S. courtroom approved the bankruptcy plan of crypto lender Celsius on Nov. 9.
Magazine: 3AC fugitives in disarray as OPNX faces new peril: Asia Express
