Hodlnaut, the Singapore-based platform for crypto lending, has been granted judicial management by the Singapore High Court, said a Hodlaunt press release. The same was confirmed in a tweet by the company.
Dear users, the Court has, on 29 Aug, confirmed that Hodlnaut will be placed under IJM. The Judge has appointed Ee Meng Yen Angela and Aaron Loh Cheng Lee, care of EY Corporate Advisors Pte. Ltd., as the Interim Judicial Managers. Our full statement here: https://t.co/qShgydXRQW— Hodlnaut (@hodlnautdotcom) August 30, 2022
Judicial management is a method of debt restructuring where an independent judicial manager is appointed to manage the affairs, business, and property of a company under financial distress, as explained by Singapore Legal Advice. The company is also temporarily shielded from legal proceedings by third parties, giving it the opportunity to rehabilitate.
While talking to international media, the company said, “We will not be able to provide further information at this juncture, but hope to provide further updates once our IJMs (Interim Judicial Managers) determine it necessary to do so.”
Hodlnaut Halted All Transactions Early This Month
Earlier this month, Hodlnaut announced that they are halting all transactions immediately while suspending withdrawals, swaps, and deposits to focus on stabilizing its liquidity and preserving the company’s assets. Furthermore, Hodlnaut also announced they are no longer operating in Singapore, as the Monetary Authority of Singapore (MAS) pulled their application.
Hodlnaut also dramatically laid off 80% of the staff. The company said it had laid off about 40 employees while also disclosing an investigation by the Singapore police. This move came ten days after the suspension of all deposits and withdrawals.
The company then went on to request the Court for Judicial Management Application.
Recently, the Monetary Authority of Singapore (MAS) issued strong warnings against retail investments in cryptocurrencies and has been taking increasingly stronger measures to restrict retail access to cryptocurrencies.
On the Flipside
- The Singapore High Court Ruling has set a precedent with this case as the crypto companies going through similar legal processes watch on.
Why You Should Care
The Singapore High Court Ruling gives a breather to Hodlnaut, as the company suffered a hit from the recent market downturn.
Similar stories:
Hodlnaut Cuts 80% of Staff While Under Investigation by Singapore Authorities
Crypto Lender Hodlnaut Needs Judicial Management to Shield Itself from Creditors