Just In: Bankrupt Crypto Lender Hodlnaut Begins Liquidation Process
After a failed attempt to restructure, Hodlnaut, a Singapore-based defunct crypto lender will be liquidated by its appointed judiciary managers Aaron Loh Cheng Lee and Ee Meng Yen Angela.
Hodlnaut eyes winding up liquidation
According to an email published by renowned auditing firm EY, the liquidators have filed a winding-up order against the distressed crypto lender which has tried severally to avoid liquidation. Hodlnaut’s efforts in this regard have failed as creditors were resistant to the proposal. These creditors said they preferred liquidation to Hodlnaut’s proposed restructuring plans.
Per a Bloomberg report, Algorand Foundation, one of Hodlnaut’s creditors opined in a court filing that liquidation will “maximize the company’s remaining assets available for distribution.”
There was also a plea to remove the two previously appointed judiciary managers but the court overruled this.
Hodlnaut had downplayed its exposure to the Terra ecosystem which went down last year and took other crypto firms along with it. Its exposure to Terra led to the loss of over $190 million from the Hodlnaut platform as reported by Cheng Lee and Angela.
Soon after that, Hodlnaut informed its users of its decision to suspend withdrawals on its platform and retract its license application from the Monetary Authority of Singapore (MAS).
Hodlnaut files for judiciary management
In order to avoid creditors’ wrath amongst other reasons, Hodlnaut applied to be put under judicial management and this was where Angela and Cheng Lee came in as interim judicial managers.
Meanwhile, Hodlnaut had requested for someone else to be its judiciary manager after the duo’s discharge as contained in the latest letter. “We have applied for Mr Tam Chee Chong of Kairos Corporate Advisory Pte Ltd to be appointed as the Interim Judicial Manager.”
The distressed crypto lender employed every means to ensure that it did not sell its crypto assets at a depressed price under forced liquidation. In the process, the company had to let go of about 80% of its workforce.
The entire bankruptcy road was quite bumpy for Hodlnaut, a case that involved the Singaporean police who once claimed it made “false representations relating to the company’s exposure to a certain digital token.” The final progress in the liquidation and bankruptcy proceedings is proof that there is light at the end of the tunnel for the firm’s creditors.
Hodlnaut now is in line to join other lenders like BlockFi and Celsius Network that have successfully exited bankruptcy.
The post Just In: Bankrupt Crypto Lender Hodlnaut Begins Liquidation Process appeared first on CoinGape.
Just In: Bankrupt Crypto Lender Hodlnaut Begins Liquidation Process
After a failed attempt to restructure, Hodlnaut, a Singapore-based defunct crypto lender will be liquidated by its appointed judiciary managers Aaron Loh Cheng Lee and Ee Meng Yen Angela.
Hodlnaut eyes winding up liquidation
According to an email published by renowned auditing firm EY, the liquidators have filed a winding-up order against the distressed crypto lender which has tried severally to avoid liquidation. Hodlnaut’s efforts in this regard have failed as creditors were resistant to the proposal. These creditors said they preferred liquidation to Hodlnaut’s proposed restructuring plans.
Per a Bloomberg report, Algorand Foundation, one of Hodlnaut’s creditors opined in a court filing that liquidation will “maximize the company’s remaining assets available for distribution.”
There was also a plea to remove the two previously appointed judiciary managers but the court overruled this.
Hodlnaut had downplayed its exposure to the Terra ecosystem which went down last year and took other crypto firms along with it. Its exposure to Terra led to the loss of over $190 million from the Hodlnaut platform as reported by Cheng Lee and Angela.
Soon after that, Hodlnaut informed its users of its decision to suspend withdrawals on its platform and retract its license application from the Monetary Authority of Singapore (MAS).
Hodlnaut files for judiciary management
In order to avoid creditors’ wrath amongst other reasons, Hodlnaut applied to be put under judicial management and this was where Angela and Cheng Lee came in as interim judicial managers.
Meanwhile, Hodlnaut had requested for someone else to be its judiciary manager after the duo’s discharge as contained in the latest letter. “We have applied for Mr Tam Chee Chong of Kairos Corporate Advisory Pte Ltd to be appointed as the Interim Judicial Manager.”
The distressed crypto lender employed every means to ensure that it did not sell its crypto assets at a depressed price under forced liquidation. In the process, the company had to let go of about 80% of its workforce.
The entire bankruptcy road was quite bumpy for Hodlnaut, a case that involved the Singaporean police who once claimed it made “false representations relating to the company’s exposure to a certain digital token.” The final progress in the liquidation and bankruptcy proceedings is proof that there is light at the end of the tunnel for the firm’s creditors.
Hodlnaut now is in line to join other lenders like BlockFi and Celsius Network that have successfully exited bankruptcy.
The post Just In: Bankrupt Crypto Lender Hodlnaut Begins Liquidation Process appeared first on CoinGape.