Crypto Lender Hodlnaut Appeals to the Judiciary for Protection

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Cryptocurrency lender Hodlnaut has asked the Supreme Court of Singapore to seek judicial protection of the company's assets from claims by creditors.

After agreeing on the restructuring plancompany with lawyers, Hodlnaut filed an application in the Supreme Court of Singapore to transfer the restructuring or possible bankruptcy of the company to the management and control of the judiciary. This measure will allow Hodlnaut to focus entirely on “remediation activities” and will not allow the company’s creditors to file claims for forced seizure of assets.

"We strive to avoid forcedliquidating our assets as this is a sub-optimal solution and will require us to sell cryptocurrencies such as BTC, ETH and wBTC at current discounted asset prices. Instead, we believe that undergoing judicial review will provide the best chance of stabilizing the company's operations. Therefore, on August 13, Hodlnaut made an application to the High Court of Singapore to transfer the cases to judicial management,” Hodlnaut said.

In the practice of the Singapore judiciary,Judicial management is a legal mechanism provided by law for companies in financial distress. In this process, instead of the directors of the company, an independent officer, a judicial manager, is appointed to manage it. In addition, the judicial management provisions impose a moratorium on all claims and proceedings against the court-administered company.

Previously, the crypto lending platform Hodlnaut suspended withdrawals of funds, exchange of crypto assets and acceptance of deposits, stating the need to “focus on stabilizing liquidity.”