Market Analysis

Hodlnaut Seeks Judicial Management After Halting Withdrawals

hodlnaut-seeks-judicial-management-after-halting-withdrawals

Key Takeaways

  • Hodlnaut, a crypto lending company that has suspended user withdrawals, is requesting judicial management in Singapore.
  • The company says that this process will protect it against legal claims and help it avoid forced liquidation.
  • Hodlnaut did not provide a date on which it might reopen withdrawals to its users.

Crypto lender Hodlnaut has announced that it is seeking judicial management in Singapore following its decision to suspend withdrawals.

Hodlnaut Requests Judicial Management

Hodlnaut has announced its latest steps toward recovery.

According to today’s announcement, Hodlnaut will seek out judicial management. The firm says that it is “aiming to avoid a forced liquidation” that would see it sell user holdings.

Judicial management provides a moratorium or temporary protection against legal claims. Other insolvent companies, such as Zipmex, Vauld, and Celsius, have similarly sought protection against legal claims through other legal processes, including bankruptcy filings.

Hodlnaut has asked to be placed under judicial management with the Singapore High Court, a strategy it believes will “provide the best chance of recovery.”

This process involves a court-appointed judicial manager leading the company instead of its usual directors. Hodlnaut has applied for Tam Chee Chong, director of Kairos Corporate Advisory Pte Ltd, to serve as its interim judicial manager.

Though the full process will take time, the company’s interim judicial manager will help prepare a recovery plan in the meantime.

Hodlnaut exchange said today that, despite its “difficult financial situation”, it is not bankrupt and that not all user funds are gone.

The firm also said that it is exploring options that would “tap into emergency exit liquidity,” subject to approval by shareholders.

Despite this progress, Hodlnaut ultimately could not provide a date at which withdrawals would be restored.

Hodlnaut froze withdrawals last week on August 8. It is at least the seventh crypto company to do so this summer, following Celsius, Babel Finance, CoinFLEX, Voyager Digital, Vauld, and Zipmex.

Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and other cryptocurrencies.

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Alex Mashinsky Traded Celsius’ Book Before Bankruptcy: FT

Celsius suffered from widely publicized insolvency issues as crypto prices crashed then filed for Chapter 11 bankruptcy in July.  Mashinsky Allegedly Traded Celsius Funds  Alex Mashinsky intervened on Celsius Network’s…

Zipmex Restores Limited Ethereum Withdrawals

News

Zipmex, a recently insolvent crypto exchange, has partially restored users’ ability to access their ETH balance, but only to a point. Zipmex Partially Opens Withdrawals ETH holders on Zipmex can…

Authorities Accuse Vauld’s Indian Entity of Aiding in Money Laun…

News

Authorities in India have frozen $46 million in assets belonging to Vauld’s legal entity in the country. Abetting Money Laundering Vauld has been accused of helping a client launder money….

Click here for the the original source (post)