Court orders liquidation of Hodlnaut and debt repayment to 17,000 clients.
The Singaporean cryptocurrency platform Hodlnaut will be liquidated according to a court decision, as reported by the consulting firm EY.
In August 2022, Hodlnaut halted all financial operations due to liquidity issues, thereafter seeking court assistance to stabilize its finances. It soon emerged that the company faced a significant capital deficit, leading to the layoff of the majority of its staff.
Aaron Lo Chen Li and E Men Yen Angela from EY were initially appointed as Hodlnaut's interim managers and will now serve as liquidators. They will be authorized to engage external specialists to carry out the process.
A loss of approximately $190 million due to the Terra ecosystem crisis in May was identified as one of the reasons for the financial difficulties. Investigations revealed that the company had not disclosed the true scale of risks associated with its investments in UST.
Over 17,000 clients of the platform are now creditors of Hodlnaut. The liquidators have not yet disclosed plans for repaying the funds, noting that individual responses to claims may be economically unjustifiable. Instead, they plan to consolidate information and provide updates to all creditors collectively.
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