1 year ago
In a melodramatic culmination to a turbulent play for Hodlnaut, the Singapore High Court has ordered the crypto lender’s liquidation, tasked with the daunting extremity of reimbursing its 17,000 customers. The judicial decree follows Hodlnaut’s entanglement with the fallout of Terra’s diminution and the company’s consequent $193 cardinal deficit.
Crypto Lender Hodlnaut Winds Up, Facing $193M Shortfall
The occupation for Hodlnaut surfaced aft the crypto lender paused lawsuit withdrawals successful July 2022, blaming worsening marketplace conditions for its plight. Not agelong after, the steadfast sought the court’s extortion via judicial management, aiming to salvage its operations. Court filings revealed the grade of the fiscal abyss Hodlnaut faces, with a staggering shortfall of astir $193 million, laying bare the vulnerability of crypto lenders to marketplace volatility.
OPNX, whose founding ties to the infamous Three Arrows Capital (3AC) person formed a dubious shadow, proposed a takeover of Hodlnaut, offering $30 cardinal successful FLEX tokens. However, Hodlnaut’s interim judicial managers criticized the connection arsenic inadequate, fixed the tokens’ illiquidity. Hodlnaut was ordered to upwind up connected November 10, 2023, by Judge Aedit Abdullah implicit its insolvency.
As liquidators instrumentality the helm, Hodlnaut faces the analyzable task of unwinding its operations. According to a circular from EY Corporate Advisors, the process volition prioritize transparency and regular updates to creditors. “Responding to each creditor queries individually whitethorn not beryllium practicable oregon economical,” Aaron Loh Cheng Lee, 1 of the appointed liquidators from EY said. “Liquidators volition alternatively consolidate their answers to creditor queries wrong their updates to each imaginable creditors.”
What bash you deliberation astir Hodlnaut’s mandated liquidation? Share your thoughts and opinions astir this taxable successful the comments conception below.
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