The Singapore High Court has received a proposal from cryptocurrency lending site Hodlnaut to place it under judicial management, a kind of creditor protection. The application was submitted on August 13, five days after the firm froze withdrawals, per a statement on Hodlnaut’s website. The application will provide the lender with a temporary barrier against any legal claims. Hodlnaut Facing Recent Market Collapse Impacts Hodlnaut is the most current in a long line of cryptocurrency businesses to face the consequences of the recent market collapse. On Monday, Singapore-based exchange Zipmex received creditor protection. In addition, Three Arrows Capital, which collapsed in June due to leverage, owes creditors billions of dollars. Hodlnaut anticipates that being placed under judicial administration will provide it the opportunity to develop a recovery strategy rather than selling off customer assets. The statement reads, “We are aiming to avoid a forced liquidation of our assets as it is a suboptimal solution that will require us to sell our users’ cryptocurrencies at these current depressed asset prices,” Hodlnaut To Provide Another Update Hodlnaut expects the entire process to take “a few months,” and on August 19, the crypto firm will provide another update. Singaporean law defines judicial management as a method for businesses in financial difficulty to get back on their feet. If approved, it would give Hodlnaut’s legal cla...
