Hodlnaut Faces Liquidation: Revealed in Recent Court Filing

In a significant turn of events, Hodlnaut, the Singapore-based cryptocurrency lender, is set to undergo liquidation as confirmed by the company's former interim judicial managers, Aaron Lee and Angela Ee. The decision stems from a winding-up order filed on November 10 with the High Court of Singapore. Hodlnaut's liquidators, Lee and Ee, will be responsible for communicating updates to the more than 17,000 creditors associated with the exchange.

The path to liquidation began when Hodlnaut sought creditor protection in August of the previous year, prompted by substantial losses totaling around $189 million. These losses were attributed to exposure within the Terra ecosystem, which experienced a collapse in May 2022. Additionally, the lender faced another setback when $13.3 million worth of cryptocurrency became locked on FTX. The situation escalated when FTX froze withdrawals and eventually filed for bankruptcy in November.

Earlier this year, Hodlnaut presented a restructuring plan to its creditors, attempting to navigate a path towards financial recovery. However, the creditors rejected the proposal, expressing a preference for liquidation as it was deemed more favorable to their interests.

Following the approval of the winding-up application filed in May, Aaron Lee and Angela Ee have now been appointed as the official liquidators of Hodlnaut. The process will be conducted in accordance with the Insolvency, Restructuring and Dissolution Act of 2018, marking a significant development in the fate of the cryptocurrency lender. The liquidators are expected to oversee the winding-up proceedings and manage the distribution of assets to the creditors. This marks the latest chapter in Hodlnaut's journey, reflecting the challenges and complexities faced by entities within the dynamic and evolving cryptocurrency landscape.

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