Cryptocurrency lender Hodlnaut, which recently stopped withdrawals, has filed an application in Singapore to be placed under creditor protection.
Hodlnaut is among the crypto companies that have been defeated in the crypto money industry this year. Stopping withdrawals on the verge of bankruptcy, the company is exploring ways to allow customers to access emergency exit liquidity.
Hodlnaut Appeals to Singapore High Court for Creditor Protection
Hodlnaut said in a statement on its website that the protection application provides a temporary opportunity for the company to focus on a recovery plan, but these are subject to approvals from various stakeholders.
The company works closely with lawyers to stabilize its financial situation. Although they admitted that they were in a difficult financial situation, they also stated that not all of their assets were lost.
Hodlnaut, who submitted his creditor protection application to the Singapore Supreme Court, said it aims to avoid forced liquidation of suboptimal assets as it would require customers to sell cryptocurrencies at low prices.
Hodlnaut also said he will do another update on August 19th and has applied for the appointment of Tam Chee Chong of Kairos Corporate Advisory Pte as head of the judiciary.
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