Crypto lending platform Hodlnaut, which is experiencing a liquidity crisis, has requested a judicial office in Singapore to stabilize its financial situation.

Dear users, thank you for your patience. We would like to inform you that as of 13 August 2022, Hodlnaut Ticaret A.Ş. has applied to be placed under judicial management.

Here is our full explanation https://t.co/Dih47Eh0vB.

Our next update will be on August 19, 2022. pic.twitter.com/6AxNdTgva3

— Hodlnaut (@hodlnautdotcom) 16 August 2022

The company said it is trying to avoid the forced liquidation of users’ holdings in bitcoin and Ethereum. The firm’s management considers this a “non-optimal solution”.

The mechanism requested by Hodlnaut provides for the appointment of a court administrator and a moratorium on legal claims against the firm.

“This pause will give us a breather to focus on the company’s rehabilitation efforts,” Hodlnaut said in a statement. Said.

The platform’s management noted that the process of approving an external director by the court could take several months, so the company submitted its own interim nomination – Chee Jong Tem of Kairos Corporate Advisory.

According to the application, the proposed specialist has 37 years of experience in corporate and financial management and has worked in various consulting firms. “big four”.

As a reminder, on August 8, Hodlnaut suspended the withdrawal, exchange and deposit of coins.

In July, crypto lending platform Vauld announced a temporary halt of operations, and Celsius Network filed for bankruptcy. The latter’s liabilities exceeded assets on the balance sheet by almost $1.2 billion.

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