Hodlnaut, a cryptocurrency landing platform based in Singapore, is set to be liquidated, as reported by consulting firm EY citing a court decision. In early August 2022, the platform suspended fund withdrawals, token swaps, and deposits. Shortly after, Hodlnaut sought court management to stabilize its financial position. The company disclosed a capital deficit of $193 million and downsized its workforce by 80% in an effort to stabilize expenses.
At the end of the month, EY’s Aaron Lo Chan Li and E Man Yen Angela were appointed as temporary administrators of Hodlnaut by the High Court. According to the latest court ruling, the pair will act as liquidators with the authority to involve external experts in the process.
The platform’s liquidity crisis resulted in an approximate $190 million loss due to the collapse of the Terra ecosystem in May, as revealed during bankruptcy proceedings. The administrators noted that Hodlnaut had concealed the true extent of risks associated with its UST position both before and after the known events.
The liquidators stated that Hodlnaut has a «significant volume of creditors,» including over 17,000 users of the landing platform. They did not disclose the prospects for meeting the company’s obligations. In their opinion, addressing individual creditor requests may prove «economically impractical.» Therefore, the liquidators intend to consolidate information and provide updates for everyone.
It is worth mentioning that the possibility of terminating Hodlnaut’s operations has been under consideration by the court since January, after creditors rejected the platform’s restructuring plan.