The Supreme Court building in Singapore, 12 October, 2016. Sing Studio/Shutterstock
Crypto lender Hodlnaut has filed an application with the Singapore High Court seeking judicial management to avoid forced liquidation of assets, the company said in a press release on 16 August.
According to the announcement, Hodlnaut requested to be put under judicial management on 13 August, only five days after it paused all withdrawals, deposits, and trading on its platform. At the time, the company said it was working with Damodara Ong LLC to strategize a recovery plan with “our user’s best interests in mind”. The company said in today’s press release that:
“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.”
The judicial management law gives the Singaporean court the right to appoint a judicial manager — who temporarily takes over the responsibilities of the director — to help struggling firms. The management of Hodlnaut has recommended that Tam Chee Chong becomes its judicial manager, saying “he will be able to execute our recovery plan and restructure the business effectively”.
Although their application is yet to be hear in court, Hodlnaut has given 19 August as the next date it will provide an update to the situation. If it is approved, the application will temporarily safeguard the crypto lender from any legal claims, giving it time to focus on its “efforts on the recovery plan to rehabilitate the company”.