Crypto Lender Hodlnaut Placed Under Interim Judicial Management by Singapore Court
The Singapore-based lender was placed under interim judicial management, a type of creditor protection, on Aug. 29.
Troubled crypto lender Hodlnaut has been placed under interim judicial management (IJM), a form of creditor protection, three weeks after it froze withdrawals due to "difficult market conditions," according to an announcement.
Judicial management is a form of debt restructuring that sees an entity manage the business, property and assets of a distressed company. The company, in this case Hodlnaut, will also be protected from legal proceedings from third parties.
On Aug. 29, Hodlnaut's legal representatives attended a court hearing alongside two creditors, both of which submitted nominations for IJM candidates. The judge appointed Ee Meng Yen Angela and Aaron Loh Cheng Lee, care of EY Corporate Advisors Pte. Ltd., as Hodlnaut's interim judicial managers.
Hodlnaut applied to be put under judicial management on Aug. 13, five days after it froze withdrawals.
The Singaporean lender was one of several crypto companies that succumbed to the pressures of a crypto market downturn. Rival lender Celsius Finance filed for bankruptcy earlier this year while hedge fund Three Arrows Capital imploded following exposure to the Terra/LUNA ecosystem that collapsed in May, wiping out $83 billion in market cap.
Hodlnaut did not immediately respond to CoinDesk's request for comment.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.