Singapore-based cryptocurrency lender Hodlnaut has filed an application with the Singapore High Court to be placed under judicial management, which could provide the company “the breathing space to focus our efforts on the recovery plan to rehabilitate the company,” Hodlnaut said on Tuesday.
See related article: Crypto lender Hodlnaut halts withdrawals, ends token swap feature
- Hodlnaut filed the application on Aug. 13, which could temporarily protect it against creditors with an independent officer being appointed in place of its directors to manage the company.
- Hodlnaut hopes to avoid a forced liquidation of its assets “at current depressed prices” and said that the application process “may take up to a few months.”
- The crypto lender’s move comes as it froze withdrawals, token swaps and deposits last week.
- In February, Hodlnaut had more than US$100 million in assets under management, up from US$1 million a year ago. Crypto influencer FatMan tweeted in June that Hodlnaut might have lost millions in the LUNA/UST collapse.
- Zipmex, a Singapore-based crypto exchange, is also struggling and has obtained a moratorium from a Singapore court to protect it against creditors until Dec. 2 for exploring a restructuring plan.
See related article: Shareholders ask Zipmex CEO to step down amid restructuring