Hodlnaut, a troubled cryptocurrency lender, is looking for judicial oversight to help the business recover.
The cryptocurrency lender Hodlnaut declared eight days ago that withdrawals were being suspended due to the unstable market circumstances. The business said this week that it is looking for judicial management to “give the greatest opportunity of recovery.”
Hodlnaut Informs Users — Crypto Lender Requests Judicial Management from Singapore High Court
Hodlnaut, a cryptocurrency lender, is asking the courts for assistance so that the platform may “avoid a forced liquidation” of the business’s assets. The cryptocurrency company suspended withdrawals last week on August 8 and said that it was “actively working on the recovery strategy.” Hodlnaut filed for judicial management with the Singapore High Court on August 13, 2022 because he feels that using court-appointed management is the best course of action.
Companies in financial difficulties in Singapore are permitted to recoup damages with the aid of a judicial manager. The plan also halts legal actions and claims brought against Hodlnaut. Hodlnaut said on Tuesday that “this halt would provide us the breathing room to concentrate our efforts on the recovery plan to rebuild the organization.” As the temporary judicial manager, Hodlnaut wishes to employ Mr. Tam Chee Chong of Kairos Corporate Advisory Pte Ltd.
Hodlnaut claims that while the court hasn’t yet reviewed the petitions, and though the firm has filed to register for court-appointed management, things might change. On August 19, the business intends to issue an update to the public in order to “present more substantial information on the judicial management process.” In addition to Celsius, Voyager Digital, Babel Finance, and Vauld halting withdrawals, Hodlnaut has also had financial difficulties.
According to Hodlnaut, it might take many months to get judicial management from the Singapore High Court. If all of the customers’ monies have been spent, is one of the commonly asked questions that is included at the very bottom of the blog page. Hodlnaut responds, “No, even if Hodlnaut is now in a precarious financial condition, not all of your assets have been lost. No user will now be given precedence in withdrawals since we have stopped all withdrawals. The blog post from the crypto lender concludes:
We are aware of the stress that this news has put our users through, and going future, we’ll try to provide updates more often.