Connect with us

Hi, what are you looking for?


High Court Orders Liquidation of Hodlnaut Crypto Lending Platform – 17,000 Users Impacted

Source: Hodlnaut

The Singapore High Court has ordered cryptocurrency lending platform Hodlnaut to undergo liquidation, as stated in a court document dated November 10.

The court has appointed Aaron Loh Cheng Lee and Ee Meng Yen Angela, both from corporate advisory firm EY, as the joint liquidators for Hodlnaut.

The decision comes after the two were initially appointed as interim judicial managers on August 29 to oversee the struggling startup.

Hodlnaut suffered substantial losses amounting to around $190 million due to its investments in the Terra ecosystem, which experienced a significant collapse.

A judicial report revealed that the company’s directors had not fully disclosed the extent of their involvement with the Terra/Luna platform both before and after its downfall in May 2022.

This placed Hodlnaut in a similar position to other financial entities such as Celsius, Voyager Digital, and Three Arrows Capital, which also faced setbacks due to their association with Terra’s algorithmic stablecoin UST.

In response to the crisis, Hodlnaut suspended customer withdrawals in July 2022, citing market conditions and the need to safeguard assets.

By August, the Singapore High Court intervened and appointed two interim judicial managers from EY Corporate Advisors to oversee the startup’s restructuring efforts.

Prior to its liquidation, Hodlnaut offered depositors interest rates as high as 12.73%.

However, with the platform now facing liquidation, the prospects of users recovering their deposits remain uncertain.

The liquidators have acknowledged that addressing individual queries may not be feasible due to the large volume of creditors.

Instead, they plan to provide bulk updates online to keep stakeholders informed.

Hodlnaut Rejects Purchase Offers

A number of potential buyers have shown interest in the embattled cryptocurrency lending company and its claims against now-bankrupt digital asset exchange FTX.

As reported, “various parties who are interested in acquiring” the Singapore-based crypto platform reached out to the interim judicial managers overseeing the company earlier this year after it sought protection from creditors.

As of December 9, Hodlnaut Group owed a combined $160.3 million, which accounts for more than 60% of the company’s outstanding debt, to some major crypto and Fintech companies like Algorand Foundation, Samtrade Custodian, S.A.M. Fintech and Jean-Marc Tremeaux.

Back in August, OPNX, a digital asset exchange created by the founders of failed hedge fund Three Arrows Capital, proposed a takeover of the struggling crypto lender Hodlnaut.

OPNX has offered to inject $30 million worth of FLEX digital tokens into Hodlnaut to fund a partial creditor payout.

The offer was submitted to the court after interim judicial managers overseeing Hodlnaut’s restructuring objected to the distressed firm’s directors emailing the bid directly to its users.

The post High Court Orders Liquidation of Hodlnaut Crypto Lending Platform – 17,000 Users Impacted appeared first on Cryptonews.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like


    Fisker (NYSE: FSR) stock price has been one of the best-performing electric vehicle (EV) stocks this week even as Tesla slumped. The shares jumped...


    Newmont (NYSE: NEM) reported mixed financial results even as the price of gold approached its all-time high. In all, the company’s earnings per share...


    NatWest (LON: NWG) share price rose sharply, helped by the strong results from Barclays. The stock jumped to a high of 274.8p, which was...


    The Fox Corporation (NASDAQ: FOX) stock price has been under pressure as investors come to terms with the abrupt firing of Tucker Carlson. The...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the-company.

    Copyright © 2023