Crypto lending platform Hodlnaut, experiencing a liquidity crisis, has requested legal action in Singaporemanagement to stabilize the financial situation.
The company said that it seeks to avoid the forced liquidation of users' assets in Bitcoin and Ethereum. The company's management considers this a «suboptimal solution».
The mechanism requested by Hodlnaut provides for the appointment of a court administrator and a moratorium on legal claims against the firm.
“This pause will provide us with breathing space to focus on efforts to rehabilitate the company,” Hodlnaut said.
Platform management noted that the processCourt approval of an external manager could take several months, so the company introduced its own interim candidate: Chi Chung Tam of Kairos Corporate Advisory.
According to the statement, the proposed specialist has 37 years of corporate and financial management experience and has worked for various Big Four consulting firms.
As a reminder, on August 8, Hodlnaut suspended withdrawals, swaps, and deposits of tokens.
In July, it announced a temporary halt to operationscrypto-lending platform Vauld, and Celsius Network filed for bankruptcy. The liabilities of the latter exceeded the assets on the balance sheet by almost $1.2 billion.
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