According to a letter from judicial officials, creditors of struggling Singaporean cryptocurrency lender Hodlnaut have overwhelmingly favored the liquidation of the company. Indeed, it has been under judicial pressure since August 2022. Aaron Loh Cheng Lee is acting judicial director (IJM). He explained that there would be no white knight investor to save the day.
All investors in favor of the liquidation of Hodlnaut
On April 25, an IJM circular was released indicating that users representing approximately 55.38% of creditors indicated that they would prefer liquidation to restructuring. Indeed, the structure could not find other sources of capital, as indicated by the letter. Cointelegraph indicates that the founders have nevertheless made a lot of effort to find new investors.
” There appears to be no indication of a white knight investor so far, and therefore no prospect of a further injection of capital. »
A few users with only 2.42% of complaints were in favor of restructuring. Almost all of them were represented by business leaders. The major creditors have clearly shown themselves hostile to a proposal for mediation. Among the main creditors, you find Samtrade Custodian and SAM Fintech. Both organizations are in liquidation. Another huge creditor is Algorand Foundation with $35 million exposure to Hodlnaut.
Another victim of the crypto winter?
The company announced that it was suspending withdrawals on August 8, 2022. A liquidity crisis had been cited as the reason. The following week, the company applied for judicial management, which protected it from legal action. under the provisions of Singapore law. ” We seek to avoid a forced liquidation of our assets as this […] will force us to sell our users’ cryptocurrencies such as BTC, ETH and WBTC at these currently depressed asset prices the company said at the time.
Police suspected Hodlnaut of misrepresenting his exposure to the stablecoin Terra which is now known as TerraUSD Classic (USTC). Besides, on-chain data indicates the company owned at least $150 million of Terra. However, the company claims the opposite. Its leaders allegedly deleted thousands of documents to hide their exposure.
There are countless misbehaviors in the crypto industry. At the same time, industry players accuse regulators of wanting to twist cryptocurrency. But won’t the fatal blow come from these players who steal and undermine investor confidence?
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