Singapore Court dismisses bid by former CTO to liquidate Cake Group

The Singapore High Court today dismissed the winding-up application filed by U-Zyn Chua, saying that Cake Group’s co-founder and former CTO “has gone too far” with the move.

Apart from ruling that there were no grounds for shuttering the crypto firm, Judicial Commissioner Alex Wong added during the court hearing that it was not appropriate for Chua to seek liquidation as a quick fix to his troubles when there were other remedies available.

Happier times with Cake Group’s co-founders: former CTO U-Zyn Chua (left) with current CEO Julian Hosp at the company’s third anniversary celebration / Photo credit: Cake Group

This puts an end to the current legal battle between Cake Group’s warring founders, Chua and CEO Julian Hosp, that began in December 2023.

Judicial Commissioner Wong, however, stressed that his order in no way endorses Hosp’s behavior as detailed in Chua’s claim. He urged the co-founders to resolve the conflict with a considered and careful approach, on the account that they have built a value-adding enterprise together.

So why did Chua not have sufficient grounds for liquidating Cake Group?

Here is a play-by-play of the commissioner’s response to Chua’s claims:

Chua and Hosp were not physically present at the hearing. But Hosp joined Cake Group’s staff at the High Court after the judgment was passed, sharing cheers of relief and then going off to celebrate.

“Today is a happy day for the Cake Group, our customers, and our talented team,” tweeted Hosp on X. “With this decision, the uncertainty for customers, team members, and partners ends today… onwards and upwards.”

Chua tells Tech in Asia that he was not expecting this outcome.”We’re back to square one,” he says.

“We definitely can’t work with each other anymore. We mutually agreed last September that one of us has to leave,” Chua adds.

See also: Is Cake cooked? Founder clashes, liquidation loom over crypto firm

Where does Chua go from here? There are no definitive steps yet, but he is looking at several ways forward, such as filing for an appeal against the commissioner’s order. He could also work with Hosp to find an amicable way out, which includes Hosp buying him out and fully taking over the company.

In a previous hearing on February 28, Hosp offered to sell his stake in the firm, however, the deal didn’t materialize.