Creditors of Hodlnaut, a Singapore-based cryptocurrency lender under judicial management since August 2022, have once again expressed their desire to liquidate the company, with over half of the creditors representing claims of about $170.5 million in favor of liquidation. The interim judicial manager stated in a circular that there is no white knight investor on the horizon, and there is no prospect of any fresh capital injection. Only 2.42% of claimants were in favor of restructuring, and almost all of those claims were from company directors. The major creditors, including Samtrade Custodian, S.A.M. Fintech, and the Algorand Foundation, opposed a mediation proposal.
As a result, the Singapore court instructed the IJMs to request the company’s liquidation and seek to be relieved of their duties. Hodlnaut suspended withdrawals in August 2022 due to a liquidity crisis and applied for judicial management the following week. It was reportedly under police investigation for misrepresenting its exposure to the Terra stablecoin, and creditors began seeking its liquidation in January.
