The Singapore and Hong Kong-based crypto lender said it was exploring options to allow users to withdraw deposits at an undisclosed discount rate, while seeking Singapore court approval to appoint a judicial manager for the company, according to a post on its blog on Friday.
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Fast facts
- While Hodlnaut is exploring withdrawal options, it is also preparing to reduce the interest on deposits for users to zero at 5 pm Hong Kong time next Monday.
- Hodlnaut said that if the application for a judicial manager is approved at a hearing next Monday, the manager will take over as director of Hodlnaut to decide on operations, and the company will be able to protect itself from creditors claims and litigation.
- The potential interim judicial manager can assess and propose a recovery plan to creditors for a vote, Hodlnaut said.
- Hodlnaut also acknowledged in the blog that the company has pending litigation between the company and the Attorney General of Singapore/Singapore Police Force but did not disclose any further details.
- Unlike other crypto lenders that went insolvent, Hodlnaut did not apply for a moratorium, like Vauld and Zipmex did, but sought judicial management.
- Hodlnaut also said they have laid off about 40 employees, or 80 percent of the workforce, since the withdrawal freeze in early August.
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