Hodlnaut, a Singapore-based crypto exchange, said it has filed an application with the local high court to be placed under judicial management shortly after halting operations.
Hodlnaut team / Photo credit: Hodlnaut
The application is Hodlnaut’s attempt at overcoming setbacks without going out of business. The company is also temporarily protected from legal proceedings by third parties.
Founded in April 2019 by Juntao Zhu and Simon Lee, Hodlnaut received approval from the Monetary Authority of Singapore (MAS) for a major payment institution license in March. However, it was also exposed to the collapse of the Terra blockchain protocol in May, and over US$187 million of its assets may have been exposed to the crash.
Hodlnaut has nominated Tam Chee Chong, director at Kairos Corporate Advisory, to serve as interim judicial manager to handle the affairs, business, and property of the embattled company.
However, applications for judicial management have not yet been heard in court and may be subject to change depending on the outcome of the court hearings. The crypto exchange is expected to provide an update on the process on August 19.
Hodlnaut is the latest firm to be affected by the crypto winter, following names such as Three Arrows Capital, Babel Finance, and Celsius.
See also: Hodlnaut may have had $187m exposure to Terra collapse
Editing by Miguel Cordon and Jaclyn Tiu
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