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<\/p>\nCrypto lender Hodlnaut\u2019s days appear to be numbered after the High Court of Singapore ended judicial management and ordered its liquidation. Users\u2019 funds have been frozen since August 2022.\u00a0<\/p>\n
Former Hodlnaut interim judicial manager (IJM) Aaron Loh Cheng Lee announced in a letter dated Nov. 10 and posted on the website of EY that he and fellow IJM Ee Meng Yen Angela have been discharged from that position and appointed liquidators. <\/p>\n
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The liquidation decision was made by the Singaporean court in a winding-up order in response to their application. According to an attachment to Lee\u2019s letter, that decision is sealed at the moment. <\/p>\n
Singapore-based Hodlnaut suspended deposits and withdrawals and simultaneously withdrew its licensing application before the Monetary Authority of Singapore on Aug. 8, 2022. The company attributed its decision to \u201crecent market conditions.\u201d According to Lee\u2019s letter, Hodlnaut\u2019s creditors include 17,000 users. Major creditors included Samtrade Custodian, S.A.M. Fintech and the Algorand Foundation.<\/p>\n
Related: Algorand Foundation outlines $35M exposure to crypto lender Hodlnaut<\/em><\/strong><\/p>\n Hodlnaut was apparently a victim of the systemic turmoil that struck the industry with the collapse of the Terra ecosystem and Three Arrows Capital (3AC). It did not have exposure to 3AC, but reportedly held around $150 million in Terra\u2019s stablecoin, since renamed TerraUSD Classic (USTC), at some time. It later took another financial hit with the collapse of FTX.<\/p>\n Hodlnaut avoided forced liquidation by applying for and receiving court-appointed IJMs. It subsequently\u00a0received creditor protection and cut its staff by 80%. It also reportedly faced a police investigation of a delay in its reporting of its USTC holdings.<\/p>\n Creditors rejected a restructuring plan in January and voted overwhelmingly for liquidation in April. OPNX, founded by former 3AC founders Su Zhu and Kyle Davies, among others, offered $30 million worth of its FLEX token for a 75% share in Hodlnaut in August 2023, but that offer was rejected by the IJMs the following month after the value of FLEX plummeted by 90%.<\/p>\n A U.S. court approved the bankruptcy plan of crypto lender Celsius on Nov. 9. <\/p>\n