Key Points:
- In a hearing planned on August 7, a Singaporean court will likely decide whether to dissolve or reorganize Hodlnaut.
- Anchor Protocol cost the company $317 million, according to prior reports.
- The company had an estimated $500 million in assets under management prior to the bankruptcy of TerraLabs in May 2022.
According to Tech in Asia, during a hearing planned on August 7, the Singapore court may determine whether to dissolve or restructure Singapore-based cryptocurrency lender Hodlnaut.
On April 25, the Interim Judicial Management (IJM) submitted a motion to terminate the proceedings, claiming that important creditors such as Samtrade Custodian and the Algorand Foundation were reluctant to talk further on a restructuring arrangement.
This might be the end of the road for the controversial crypto-lending company, which has been under judicial control for almost a year.
In November 2022, the Commercial Affairs Department initiated an inquiry against Hodlnaut and its directors for alleged cheating and fraud charges.
According to the court, 55.8% of Hodlnaut’s debtors wanted the firm liquidated. Creditors have filed claims totaling 409 million Singapore dollars (about $304 million) against the exchange. Simon Lee and Zhu Juntao, the founders of Hodlnaut, have informed the court that they would resist the motion to liquidate the firm.
Hodlnaut is one of numerous crypto lending enterprises that have failed as a result of the market slump caused by TerraUSD’s meltdown and the following bankruptcy of Three Arrows Capital. The company may have had a $187 million exposure to TerraUSD and $314 million in Anchor Protocol.
The company said that it is working with Singapore-based legal firm Damodara Ong on a recovery strategy and would offer an update on August 19. For the time being, it intends to continue paying interest to consumers in order to reduce liabilities.
Hodlnaut had an estimated $500 million in assets under control prior to the bankruptcy of TerraLabs in May 2022. After the collapse, concerns were raised concerning the latter’s vulnerability to the former’s Anchor Protocol. Hodlnaut denied having any exposure as recently as June of last year.
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Harold
Coincu News
Source: https://news.coincu.com/196915-hodlnaut-can-be-dissolved/