Crypto lender Hodlnaut’s days seem like numbered after the Excessive Courtroom of Singapore ended judicial administration and ordered its liquidation. Customers’ funds have been frozen since August 2022.
Former Hodlnaut interim judicial supervisor (IJM) Aaron Loh Cheng Lee introduced in a letter dated Nov. 10 and posted on the web site of EY that he and fellow IJM Ee Meng Yen Angela have been discharged from that place and appointed liquidators.
The liquidation resolution was made by the Singapore court docket in a Winding-up Order in response to their software. In keeping with an attachment to Lee’s letter, that call is sealed in the intervening time.
Singapore-based Hodlnaut suspended deposits and withdrawals and concurrently withdrew its licensing software earlier than the Financial Authority of Singapore on August 8, 2022. The corporate attributed its resolution to “latest market circumstances.” In keeping with Lee’s letter, Hodlnaut’s collectors embody 17,000 customers. Main collectors included Samtrade Custodian, S.A.M. Fintech and the Algorand Basis.
Associated: Algorand Basis outlines $35M publicity to crypto lender Hodlnaut
Hodlnaut was apparently a sufferer of the systemic turmoil that struck the business with the collapse of the Terra ecosystem and Three Arrows Capital (3AC). It didn’t have publicity to 3AC, however reportedly held round $150 million in Terra stablecoin, since renamed TerraUSD Traditional (USTC), at a while. It later took one other monetary hit with the collapse of FTX.
The worth of FLEX token — the proposed settlement digital foreign money for Hodlnaut’s $30 million buyout — has plummeted 90% for the reason that provide was made in early August. https://t.co/PDgFgiKp4P
— Cointelegraph (@Cointelegraph) September 19, 2023
Hodlnaut prevented pressured liquidation by making use of for and receiving court-appointed IJMs. It subsequentlyacquired creditor safety and reduce its employees by 80%. It additionally reportedly confronted a police investigation of a delay in its reporting of its USTC holdings.
Collectors rejected a restructuring plan in January and voted overwhelmingly for liquidation in April. OPNX, based by former 3AC founders Su Zhu and Kyle Davies, amongst others, supplied $30 million price of its FLEX token for a 75% share in Hodlnaut in August 2023, however that provide was rejected by the IJMs the next month after the worth of FLEX plummeted by 90%.
A U.S. court docket authorized the chapter plan of crypto lender Celsius on Nov. 9.
Journal: 3AC fugitives in disarray as OPNX faces new peril: Asia Specific
