Hodlanut’s latest update reads, “We believe that judicial management is the option which would most benefit our users now and in the long run.”
Crypto lending platform Hodlnaut reveals the company has police proceedings with the Singapore Attorney-General and the Singapore Police Force. The announcement came a few days after Hodlnaut suspended its withdrawals and filed for creditor protection as the crypto prices went on a downswing with the onset of the crypto winter.
In an official update, the Hodlnaut reveals that the Singaporean firm has applied to be placed under judicial management following losses incurred by its Hong Kong subsidiary due to the TerraUSD crash.
Hodlnaut claims that by placing itself under Interim Judicial Management, the company would avoid liquidating its BTC and ETH assets, in addition to using this time to execute a recovery plan to get the company back on its feet.
The recovery plan aims to restore Hodlnaut’s asset-to-debt ratio to 1 to let users withdraw the full value of their assets deposited with the company. Moreover, following August 22, Hodlnaut will reduce all open-term interest rates to 0% APR as a means to stabilize its liquidity.
Hodlnaut has also laid off 80% of its staff (40 employees) to further reduce its expenditure and claims that the remaining employees are vital to carrying out its core functions.
The update also claims that even though Hodlnaut has an account with Celsius Network, the latter has never borrowed or lent crypto assets to Hodlnaut.
Hodlnaut reveals the company will provide its next update on August 23 following its Interim Judicial Management hearing scheduled for August 22.
