Hodlnaut, a Singapore-based cryptocurrency lending platform, announced that the Singapore High Court had granted it judicial management. The corporation confirmed it via Twitter.
Dear users, the Court has, on 29 Aug, confirmed that Hodlnaut will be placed under IJM. The Judge has appointed Ee Meng Yen Angela and Aaron Loh Cheng Lee, care of EY Corporate Advisors Pte. Ltd., as the Interim Judicial Managers. Our full statement here: https://t.co/qShgydXRQW
— Hodlnaut (@hodlnautdotcom) August 30, 2022
On August 29, 2022, a Singapore High Court Judge designated Ee Meng Yen Angela and Aaron Loh Cheng Lee as the Interim Judicial Managers via EY Corporate Advisors Pte Ltd.
Singapore Legal Advice describes judicial management as the process of restructuring debt in which a neutral judicial manager oversees the activities, operations, and assets of the firm experiencing financial difficulties. In this situation, the business has the opportunity to rebuild while also being protected from legal action from third parties for a period of time.
In a statement to foreign media, the firm said it would not be able to provide any further information at this time, but it anticipates giving further updates as soon as the Interim Judicial Managers (IJMs) deem it necessary.
Beginnings of All This
A few weeks ago, Hodlnaut announced they were stopping all transactions and suspending deposits, swaps, and withdrawals for the time being so that their liquidity could be stabilized and their assets protected. Additionally, Hodlnaut disclosed that they had ceased doing business in Singapore due to the non-approval of their application by the Monetary Authority of Singapore (MAS).
Moreover, Hodlnaut abruptly fired 80% of the employees. When the business announced the termination of roughly 40 workers, it disclosed this investigation by the Singapore police.
After that, the firm applied to the court for judicial management. As a result, the Monetary Authority of Singapore is cautioning against retail cryptocurrency investments (MAS), and new regulations are being enforced to restrict retail access to cryptocurrency.