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Edited by Samiksha at 26-12-2023 01:00 PM
According to court documents filed on November 10, 2023, Hodlnaut, a cryptocurrency lending company based in Singapore, is facing an urgent situation of liquidation. The company also operates in Hong Kong and had previously suspended withdrawals while seeking protection from creditors. Despite efforts to rescue creditors, they were unsuccessful, ultimately leading to the decision to liquidate the company.
Hodlnaut's liquidators will consolidate queries from creditors. Court documents reveal that Ms. Ee Ming Yen Angela and Mr. Aaron Loh Cheng Lee were appointed as provisional judicial managers (IJM) for Hodlnaut in August 2022. However, as of November 10, the Singapore High Court lifted the IJM order, and subsequently, the duties of IJM were revoked. They were then appointed as joint and several liquidators by the Singapore High Court to fulfill their duties under the winding-up order.
The liquidators acknowledge the large number of creditors, including over 17,000 platform users, and state that responding to individual creditors' inquiries may be impractical or cost-ineffective. They assure that answers to creditors' questions will be consolidated in updates and conveyed to all potential creditors. The liquidators commit to providing regular updates through email and the official Hodlnaut website.
The decision to liquidate Hodlnaut comes after the company's major creditors rejected a proposed restructuring plan. Creditors expressed their preference for liquidation, stating that it would maximize the distribution of remaining assets. The proposed restructuring plan faced opposition due to a provision allowing directors responsible for Hodlnaut's financial troubles to continue managing the business. The Singapore police announced an investigation into potential cheating and fraudulent activities involving Hodlnaut and its directors in November of the previous year.
Hodlnaut's difficulties stem from the collapse risk of the Terra digital token ecosystem led by Do Kwon. The company suffered significant losses of nearly $190 million during a downturn in the digital asset market, triggering a financial crisis and subsequently seeking protection from creditors.
The future of Hodlnaut remains uncertain as the liquidation process unfolds. A recent court judgment rejected the application to remove the provisional judicial managers, further intensifying the challenges the company continues to face.
The liquidation process will determine the distribution of remaining assets to creditors and provide an in-depth understanding of the company's financial situation. The Singapore police are investigating potential fraudulent activities, which may reveal charges against Hodlnaut and its directors.
The daily chart shows an upward trend in the total cryptocurrency market capitalization.
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According to CoinGecko data, the current global cryptocurrency market capitalization is $13.8 trillion, with a slight decrease of -0.09% in the past 24 hours. In comparison, the market value has grown significantly by 55.27% since last year.
It is noteworthy that Bitcoin (BTC) maintains dominance with a market value of $725 billion, accounting for 49.85% of the total cryptocurrency market. Meanwhile, the market value of stablecoins is $126 billion, representing an 8.7% share of the entire cryptocurrency market. |
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Post time 16-11-2023 12:29:00