Singapore cryptocurrency exchange Hodlnaut announced on August 29 that the company will be placed under Interim Judicial Management, in accordance with a court judgement delivered on Monday.
This means that Hodlnaut will be able to restructure their debts, while being protected from legal proceedings from third-parties. Two Corporate Advisors from accounting firm EY have been appointed by the judge as Hodlnaut’s interim judicial managers (IJMs).
According to the company’s blog, Hodlnaut is not able to provide any further information at this time, but “hopes to provide further updates once our IJMs determine it necessary to do so.”
Earlier this month, Hodlnaut suspended withdrawals, swaps, and deposits in order to focus on stabilising the company’s liquidity. The company also withdrew from its Major Payments Institutions Licence application from the Monetary Authority of Singapore. Previously, Hodlnaut had already been granted an in-principle approval from MAS in March 2022.
Two weeks ago, the company also laid off 80 per cent of its workers; All remaining employees were deemed to be “necessary headcount” in order to carry out key functions. Hodlnaut also explained that the company’s financial circumstances were a result of losses suffered in the TerraUSD crash, among other factors.
Currently, it is not possible to make withdrawals from Hodlnaut accounts, and all open interest rates remain at 0 per cent APR.
Hodlnaut is one of the casualties of the recent downturn in the cryptocurrency space, which has wiped US$2 trillion from asset values over the past few months.
Other companies that have been hard hit include Terraform Labs, which issued the TerraUSD token, as well as crypto lending platforms Celsius and Babel finance, and Three Arrows Capital.
Featured Image Credit: Hodlnaut, Foster+ Partners
