According to a current report, Singapore’s crypto lending agency, Hodlnaut, is going through liquidation. This determination comes in the wake of the corporate’s unsuccessful efforts to restructure, following vital monetary losses tied to the Terra/Luna crash and the collapse of FTX final yr.
Hodlnaut’s Failed Rescue Mission
Hodlnaut’s journey to liquidation started with a lack 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 belongings had been entangled in the chapter of the FTX alternate. Consequently, the corporate tried to protect itself from immediate liquidation by in search of judicial administration to guard its remaining crypto belongings from a compelled sell-off.
However, this salvage try was met with resistance. In August, Hodlnaut knowledgeable its 17,000 customers about halting withdrawals and withdrew its license software from the Monetary Authority of Singapore. Aaron Lee and Angela Ee stepped in as judicial managers, however their efforts couldn’t steer the agency away from its impending destiny. Moreover, the corporate needed to lay off 80% of its workforce, a telling signal of the deepening disaster.
Creditors Choose Liquidation Over Restructuring
Creditors, together with the Algorand Foundation, finally dismissed the restructuring plan. They argued that liquidation would higher protect the corporate’s remaining belongings. This determination, reached in January, sealed Hodlnaut’s destiny. The liquidation, managed by the auditing agency EY, marks the tip of a difficult chapter for Hodlnaut and its customers.
In addition, the Singapore police investigation into Hodlnaut’s alleged “false representations relating to the company’s exposure to a certain digital token” additional difficult issues. This investigation, launched in November, added a layer of authorized scrutiny to the agency’s already precarious scenario.
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