Token

Celsius

Algorand

Foundation

Kairos

Distressed crypto lender Hodlnaut can now reckon with the likes of <a href="https://thecoinrise.com/blockfi-shares-withdrawal-plans-after-emergence-from-bankruptcy/" rel="noopener noreferrer nofollow">BlockFi</a> and <a href="https://thecoinrise.com/celsius-network-creditors-vote-in-favor-of-reorganization-plan/" rel="noopener noreferrer nofollow">Celsius Network</a> which have <a 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" rel="noopener noreferrer nofollow">successfully exited bankruptcy</a> following a recent development. Aaron Lee and Angela Ee, former interim judicial managers of the Singapore-based crypto firm, confirmed that Hodlnaut will be liquidated. This is in line with a winding-up order which was filed on November 10 with the High Court of Singapore.
<h2 id="b-hodlnaut-suffers-exposure-to-terraform-crash-b-span-style-font-weight-400-span">Hodlnaut Suffers Exposure to Terraform Crash&nbsp;</h2>
<a href="https://thecoinrise.com/hodlnaut-has-halted-withdrawals-due-to-recent-market-conditions/" rel="noopener noreferrer nofollow">Hodlnaut halted withdrawal</a> on its platform in August last year citing the market conditions at the time as the reason for the move. In addition, the crypto lender withdrew its Digital Payment Token (DPT) license application from the Monetary Authority of Singapore (MAS). It was later reported that the crypto lender had suffered a <a href="https://thecoinrise.com/hodlnaut-records-193m-as-financial-shortfall-from-ust-crash/" rel="noopener noreferrer nofollow">financial shortfall worth $190 million from the Terraform crash</a>.
It is worth noting that at this time, other crypto exchanges like Celsius Network, Babel Finance, and Voyager Digital were equally struggling to find a balance in the market.
<h2 id="b-court-appoints-interim-judicial-managers-for-hodlnaut-b-span-style-font-weight-400-span">Court Appoints Interim Judicial Managers for Hodlnaut&nbsp;</h2>
With the growing intensity of the liquidity crisis, Hodlnaut decided to file <a href="https://thecoinrise.com/hodlnaut-wants-judicial-management-to-avoid-forced-liquidation/" rel="noopener noreferrer nofollow">for Judicial Management oversight</a> with the Singapore High Court. The crypto lender strongly believed that it was better to receive a moratorium from the court than to undergo forced liquidation where it would have to give up its assets at depressed prices.&nbsp;
As part of the application, Hodlnaut requested that Mr. Tam Chee Chong of Kairos Corporate Advisory Pte Ltd, a restructuring veteran who has over 37 years of experience in an advisory role, be its interim Judicial Manager. When the motion was eventually granted, the judge named EY Corporate Advisors Lee and Ee as Hodlnaut’s Interim Judicial managers.&nbsp;
<h2 id="b-hodlnaut-creditors-chose-liquidation-over-restructuring-b-span-style-font-weight-400-span">Hodlnaut Creditors Chose Liquidation Over Restructuring&nbsp;</h2>
In the long run, Hodlnaut creditors including Algorand Foundation who claimed to have <a href="https://thecoinrise.com/algorand-has-a-35m-exposure-to-troubled-crypto-lender-hodlnaut/" rel="noopener noreferrer nofollow">$35 million exposure</a> to the defunct firm, became uncomfortable with talks about a restructuring plan for the crypto lender. They stated that liquidation was preferred to a restructuring, especially since the latter would be done by the same directors who contributed to the downfall of the firm.
Considering the latest news, it is obvious that the judiciary management which Hodlnaut had believed would save it from forced liquidation, did not do so much in that regard.
The post <a href="https://thecoinrise.com/defunct-to-hodlnaut-exit-bankruptcy-with-liquidation/" rel="noopener noreferrer nofollow">Defunct to Hodlnaut Exit Bankruptcy With Liquidation</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Defunct to Hodlnaut Exit Bankruptcy With Liquidation

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