Crypto lender Hodlnaut is another one on the list to have faced the wrath of crypto winter. Like other crypto market participants, it also faced subsequent losses due to the bearish sessions in the crypto market which might even result in a forced liquidation. However, the crypto lending firm opposed such a liquidation order by taking a major step. Read further to know what it did.
Crypto Lender Hodlnaut Wants Judicial Management
The Singapore-based crypto lending organization, Hodlnaut, recently asked for judicial management of its current liquidity crisis. The step was taken in order to deter the organization from experiencing any forced liquidation procedure, which firms like Three Arrows Capital recently faced. Such an action was a result of prolonged crypto crash sessions, stringent crypto regulations, and even the Terra (LUNA) crash. The firm released an official announcement on the matter to inform their customers about their actions. The press release mentioned that:
“As we work towards stabilizing our financial situation, the Founders and the Hodlnaut team in Singapore are working closely with our lawyers, and have weighed various available options for our next steps. We are aiming to avoid a forced liquidation of our assets as it is a suboptimal solution that will require us to sell our users’ cryptocurrencies such as BTC, ETH, and WBTC at these current depressed asset prices. Instead, we believe that undergoing judicial management would provide the best chance of recovery. Therefore as of 13 August 2022, Hodlnaut Pte Ltd filed an application with the Singapore High Court to be placed under judicial management. We have applied for Mr. Tam Chee Chong of Kairos Corporate Advisory Pte Ltd to be appointed as the Interim Judicial Manager and subsequently, the Judicial Manager. These applications, though filed, have not yet been heard in court and may be subject to change depending on the outcome of the court hearings.”
The ongoing crypto winter season has led to a lot of destruction in the crypto industry to which Celsius, Nuri, and Coinflex, have been a victim. The Terra (LUNA) crash affected almost all of the crypto industry participants mentioned here including the one focused on in this article. In addition, the tightening of crypto regulations in the world has also contributed to the mishaps in the domain. Crypto lender Hodlnaut is trying hard to survive the atrocities of the recent crypto crash sessions, however, it is uncertain whether it will succeed or not.