Crypto lender Hodlnaut faces liquidation after High Court ruling
If you’re a user of crypto lender Hodlnaut, you may be concerned to learn that the High Court of Singapore has ordered the company’s liquidation, freezing users’ funds since August 2022.
In a letter dated Nov. 10, former Hodlnaut interim judicial manager (IJM) Aaron Loh Cheng Lee announced that he and fellow IJM Ee Meng Yen Angela have been discharged from their positions and appointed as liquidators. The decision was made in response to their application for liquidation, sealed by the Singapore court in a Winding-up Order.
Hodlnaut suspended deposits and withdrawals on August 8, 2022, citing “recent market conditions” and withdrawing its licensing application before the Monetary Authority of Singapore. The company has 17,000 creditors, including major ones like Samtrade Custodian, S.A.M. Fintech and the Algorand Foundation.
Hot Take: What does this mean for crypto lenders?
The liquidation of Hodlnaut serves as a reminder of the risks involved in dealing with crypto lenders. It highlights the importance of thorough due diligence and research before entrusting your funds to any financial institution within the crypto space. As the industry continues to evolve, regulatory compliance and financial stability should be top priorities for both users and service providers alike.
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