Creditors of Singapore-based cryptocurrency lender Hodlnaut have reiterated their desire to liquidate the company, which has been under judicial administration since August 2022. Interim Judicial Manager (IJM) Aaron Loh Cheng Lee on the notification of the updated case.
Users representing about 55.38% of creditors, with claims of 228.3 million Singapore dollars (about 170.5 million US dollars), said they preferred liquidation to reorganization, according to a circular from IJMs on April 25. The letter notes that despite the founders' efforts to find new investors, no new sources of funding have been found: “So far there appears to be no indication of white knight investors, so there is no prospect of any new capital injections.”
Only 2.42% of claiming users supported restructuring, and almost all of these claims were for company directors. The mediation offer was opposed by "principal" creditors. Leading creditors include Samtrade Custodian and the fintech and Algorand Foundation in SAM liquidation. Algorand's investment in Hodlnaut is $35 million.
According to the Letter, The Singapore Court Direct The Ijms to Apply to Apply to "The Company and Apply for Dissolution. UT Anounded that withdrawals will be suspended on August 8, 2022. It Applied for Judicial Administration the following week, temporarily shielding it from legal claims under Singapore law. “Our goal is to avoid a forced liquidation of our assets, as it would require us to sell users' cryptocurrencies such as BTC, ETH, and WBTC at the currently depressed asset prices ,” the company said at the time.
Loh Cheng Lee and Another Ijm Are Affiliated with Ernst & Young. Hodlnaut is Reportedly Under Police Investigation His Exposure to the Terra S Tablecoin Now Known As Terrausd Classic (USSC). ON-Chain Data Suggests that, Despite Claims to the Contrary, The The company holds at least $150 million worth of expired tokens. Company executives deleted thousands of documents to hide their exposure.
