Cryptocurrency lender that recently stopped withdrawals Hodlnauthas filed an application for creditor protection in Singapore.
Hodlnaut is among the crypto companies that have been defeated in the crypto money industry this year. Stopping withdrawals on the verge of bankruptcy, the company is exploring ways to allow customers to access emergency exit liquidity.
Hodlnaut Appeals to Singapore High Court for Creditor Protection
Hodlnaut said in a statement on its website that the protection application provides a temporary opportunity for the company to focus on a recovery plan, but these are subject to approvals from various stakeholders.
The company works closely with lawyers to stabilize its financial situation. Although they admitted that they were in a difficult financial situation, they also stated that not all of their assets were lost.
Hodlnaut, who submitted his creditor protection application to the Singapore Supreme Court, said it aims to avoid forced liquidation of suboptimal assets as it would require customers to sell cryptocurrencies at low prices.
Hodlnaut will do another update on August 19th and from Kairos Corporate Advisory Pte. Tam Chee ChongHe also said that he applied to be appointed as the judicial director.
