Aug 30, 2022 Frank Stewskid
After freezing all trading activities and withdrawals due to a liquidity crisis, the Singapore-based crypto lending platform Hodlnaut released a short blog post today notifying its users that the company has been placed under Interim Judicial Management by the Singapore court. Judicial Management in Singapore allows financially troubled firms to try and rehabilitate themselves while being under management by an officer referred to as Judicial Manager.
In accordance with a request made by the Judge, two of Hodlnaut’s creditors submitted their nominations for Judicial Managers. On August 29, the Court delivered judgment appointing Ee Meng Yen Angela and Aaron Loh Cheng Lee as Judicial Managers (IJMs). Hodlnaut remained silent about further information but stated they “hope to provide further updates once our IJMs determine it necessary to do so”.
Dear users, our legal representatives have attended the Interim Judicial Management hearing today. The Court has reserved judgment until Monday, 29 August 2022, at 3:45pm to consider the issues at hand.— Hodlnaut (@hodlnautdotcom) August 26, 2022
Our full statement here: https://t.co/VGfTua0CVs
Earlier this month, Hodlnaut cut 80% of its staff and stated hopes of being able to utilize judicial management to restore its asset-to-debt ratio to 1:1 and finally allow its users the ability to withdraw their assets. The company has also previously stated it was exploring the option to allow users to withdraw their initial deposits, with interest accrued in full, before closing their accounts. As of now, this option will be subject to the approval of the newly appointed judicial managers.