As it seeks to solve its liquidity crisis, the troubled Asian crypto lender Hodlnaut, which stopped client withdrawals last week, has applied for protection against creditors in Singapore.
Announcing the news on Tuesday, Hodlnaut said it filed the application on August 13 in the Singapore High Court to be placed under judicial management — a process to prohibit any legal claims and proceedings against it by creditors.
Hodlnaut’s action is comparable to those taken by Zipmex and Vauld
Zipmex and Vauld both requested Singaporean creditor protection and were given roughly three months to settle their financial problems.
Hodlnaut stated that it is collaborating with attorneys and seeks to prevent being forced to liquidate its assets at the present lower rates. On August 19, the company is anticipated to give its subsequent update.
The Singapore High Court will designate a judicial manager—an impartial officer of the court—to supervise Hodlnaut as part of the court’s judicial management procedure.
“We will be exploring available solutions on allowing our users to tap into emergency exit liquidity, but these are currently still subject to discussions and approvals by various stakeholders,” said Hodlnaut.
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