Crypto Lender Hodlnaut Placed Under Interim Judicial Management by Singapore Court
Troubled crypto lender Hodlnaut has been placed under interim judicial management (IJM), a form of creditor protection, three weeks after it froze withdrawals due to "difficult market conditions", according to an announcement.
Judicial management is a form of debt restructuring that sees an entity manage the business, property and assets of a distressed company. The company, in this case Hodlnaut, will also be protected from legal proceedings from third parties.
On Aug. 29, Hodlnaut's legal representatives attended a court hearing alongside two creditors, both of which submitted nominations for IJM candidates. The judge appointed Ee Meng Yen Angela and Aaron Loh Cheng Lee, care of EY Corporate Advisors Pte. Ltd., as Hodlnaut's interim judicial managers.
Hodlnaut applied to be put under judicial management on Aug. 13, five days after it froze withdrawals.
The Singaporean lender was one of several crypto companies that succumbed to the pressures of a crypto market downturn. Rival lender Celsius Finance filed for bankruptcy earlier this year while hedge fund Three Arrows Capital imploded following exposure to the Terra/LUNA ecosystem that collapsed in May, wiping out $83 billion in market cap.
Hodlnaut did not immediately respond to CoinDesk's request for comment.