Algorand

Terra

Anchor

According to a recent <a rel="noopener noreferrer nofollow" href="https://assets.ey.com/content/dam/ey-sites/ey-com/en_sg/generic/hodlnaut-pte-ltd-(ijm)/l001-first-circular-11-10-2023.pdf">report</a>, Singapore’s crypto lending firm, Hodlnaut, is facing liquidation. This decision comes in the wake of the company’s unsuccessful efforts to restructure, following significant financial losses tied to the Terra/Luna crash and the collapse of FTX last year.
<h2 id="hodlnaut-s-failed-rescue-mission">Hodlnaut’s Failed Rescue Mission</h2>
Hodlnaut’s journey to liquidation began with a loss of $189.7 million in the Anchor Protocol, a now-defunct DeFi platform for the Terra stablecoin UST. Adding to their woes, over $13 million of their assets were entangled in the bankruptcy of the FTX exchange. Consequently, the company attempted to shield itself from <a href="https://coingape.com/crypto-lender-hodlnaut-lays-off-80-staff/" rel="noopener noreferrer nofollow">immediate</a> liquidation by seeking judicial management to protect its remaining crypto assets from a forced sell-off.
However, this salvage attempt was met with resistance. In August, Hodlnaut informed its 17,000 users about halting withdrawals and withdrew its license application from the Monetary Authority of Singapore. Aaron Lee and Angela Ee stepped in as judicial managers, but their efforts could not steer the firm away from its impending fate. Moreover, the company had to <a href="https://coingape.com/crypto-lender-hodlnaut-lays-off-80-staff/" rel="noopener noreferrer nofollow">lay off 80%</a> of its workforce, a telling sign of the deepening crisis.
<h2 id="creditors-choose-liquidation-over-restructuring">Creditors Choose Liquidation Over Restructuring</h2>
Creditors, including the Algorand Foundation, ultimately dismissed the restructuring plan. They argued that <a href="https://coingape.com/hodlnaut-to-liquidate-following-creditors-disagreement/" rel="noopener noreferrer nofollow">liquidation</a> would better preserve the company’s remaining assets. This decision, reached in January, sealed Hodlnaut’s fate. The liquidation, managed by the auditing firm EY, marks the end of a challenging chapter for Hodlnaut and its users.&nbsp;
In addition, the Singapore police <a href="https://coingape.com/this-singapore-based-crypto-lender-faces-investigation-for-possible-fraud/" rel="noopener noreferrer nofollow">investigation</a> into Hodlnaut’s alleged “false representations relating to the company’s exposure to a certain digital token” further complicated matters. This investigation, launched in November, added a layer of legal scrutiny to the firm’s already precarious situation.&nbsp;
The post <a rel="noopener noreferrer nofollow" href="https://coingape.com/hodlnaut-faces-liquidation-in-singapore-following-financial-woes/">Hodlnaut Faces Liquidation in Singapore Following Financial Woes</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://coingape.com">CoinGape</a>.

Hodlnaut Faces Liquidation in Singapore Following Financial Woes

Table of Contents

Coingape News Media

Other articles published on Nov 10, 2023

Genesis Seeks Court Nod to Cut 3AC Claim to $33M

Ripple Expands Cross-Border Payment Network to 70+ Markets

Bitget Exchange Lists SATS

Ethereum’s Vitalik Buterin Transfers 50 ETH As it Hit $2,000

Vitalik Buterin Sends Ethereum on Coinbase as ETH Hits $2,000

Crypto Prices Today: BTC & RPL Soar, While Pepe Coin Remains Flat

Join our free newsletter for daily crypto updates!