Cryptocurrency lending platform Hodlnaut has filed an application with the Singapore High Court to be put under judicial management, which is a form of protection from creditors.

According to an announcement on Hodlnaut's website, the application was filed on Aug. 13, five days after the company froze withdrawals. The application will temporarily safeguard the lender from any legal claims.

Hodlnaut is the latest in a long line of crypto companies that have been stung by the recent market downturn, Singapore-based exchange Zipmex received creditor protection on Monday, while trading firm Three Arrows Capital owes billions of dollars to creditors after imploding in June due to leverage.

Hodlnaut hopes that being put under judicial management will allow it to devise a recovery plan to avoid liquidating customer assets.

"We are aiming to avoid a forced liquidation of our assets as it is a suboptimal solution that will require us to sell our users’ cryptocurrencies at these current depressed asset prices," the statement read.

The entire process is expected to take a "few months" and Hodlnaut will provide a further update on Aug. 19.