Crypto lender Hodlnot has announced that it has filed for protection against creditors in Singapore to resolve its liquidity issues. According to the announcement, Hodlnot filed an application with the Singapore High Court on August 13, days after the company placed the withdrawals from its platform under judicial management. The latest application filed by the company will temporarily protect it from any legal claims and proceedings against it by the creditors. Hodlnot also disclosed that he is currently working with lawyers not to force his assets to liquidate at its current low cost.
“We aim to avoid forced liquidation of our assets as this is a suboptimal solution that would require us to sell our users’ cryptocurrencies such as BTC, ETH and WBTC at these currently depressed asset prices,” the announcement said. Reading,
“This pause will provide us with breathing space to focus our efforts on the recovery plan to rehabilitate the company,” the statement said.
The High Court of Singapore will appoint a judicial manager who will be an independent officer of the court to manage the firm as part of the judicial management process.
However, the firm has applied to appoint Chi Chong Tam, a former partner at Deloitte Southeast Asia and current director of Kairos Corporate Advisors, to take on the role of judicial manager. Chong Tam is also the company’s substitute for interim judicial manager while Singapore courts review the firm’s application.
Hodlnaut is expected to provide its next update on August 19 and expects its latest action to take some time to devise a recovery plan to avoid liquidating customer assets.
The Singapore-based firm is the latest name in an already long list of crypto companies that have faced financial issues due to the recent market downturn. Celsius, SailorAnd BlockFi There are other firms stunned by the recent market crash.
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