Crypto lender Hodlnaut has announced that it has filed for creditor protection in Singapore in a bid to address its liquidity issues. According to the announcement, Hodlnaut filed the request with the High Court of Singapore on August 13, just days after the company halted withdrawals from its platform, to be placed in receivership. The last demand filed by the company will temporarily protect it from any claims and lawsuits against it by creditors. Hodlnaut also revealed that he is currently working with lawyers to avoid being forced to liquidate his assets at his current lower price.
“We aim to avoid a forced liquidation of our assets as this is a sub-optimal solution that will force us to sell our users’ cryptocurrencies such as BTC, ETH and WBTC at these currently depressed asset prices. “, reads the announcement.
“This break will give us respite to focus our efforts on the recovery plan to clean up the business,” the statement added.
The High Court of Singapore will appoint a Judicial Director who will be an independent officer of the court to manage the firm in its judicial management process.
The firm has, however, sought the appointment of a former partner of Deloitte Southeast Asia and current director of Kairos Corporate Advisory, Chee Chong Tam, to assume the role of legal manager. Chong Tam is also the company’s option for acting judicial director while the Singapore courts consider the company’s candidacy.
Hodlnaut is expected to provide its next update on August 19 and hopes its latest action will give it time to devise a recovery plan to avoid liquidating client assets.
The Singapore-based company is the latest in an already long list of crypto companies that have struggled financially this year due to the recent market downturn. Celsius, Voyager and BlockFi are other companies stung by the recent stock market crash.
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