A court in Singapore puts crypto lender Hodlnaut under temporary administration

Almost a month after Hodlnaut froze withdrawals, the crypto lender was placed under temporary judicial administration.

For starters, legal management is essentially a method of debt settlement in which an independent legal director is appointed to oversee the affairs, business, and property of a financially troubled company.

  • With the latest ruling by a Singapore court on August 29, Hodlnaut will be temporarily protected from third-party legal action, allowing her to rehabilitate.
  • The lender had previously said that the judicial administration would provide the best chance of recovery rather than filing a foreclosure lawsuit, which could lead to a forced liquidation of assets.
  • According to the latest update, the legal representatives of the Singapore-based company attended a court hearing where Judge E Ming Yen appointed Angela and Aaron Luo Ching Lee, President of EY Corporate Advisors Pte. Ltd., as temporary legal directors.

“We will not be able to provide more information at this time, but we hope to provide more updates when the IJM deems it necessary to do so.”

  • Hodlnaut is one of several companies in the industry, including hedge fund Three Arrows Capital, lenders Voyager Digital and Celsius Network, to falter in crater market conditions after exposure to the Terra ecosystem in May.
  • Since the platform activity froze, Hodlnaut has laid off about 80% of its workforce, or about 40 people. In an effort to stabilize liquidity and reduce costs, the company lowered interest rates to 0% APR.

The Singapore court that placed Crypto Lender Hodlnaut under temporary judicial administration first appeared on CryptoPotato.

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