Who’s going to invest in a platform run by Hodlnaut and 3AC?

Image credit: Timmy Loen

Last week, the end of Hodlnaut seemed imminent, but it didn’t happen.

To refresh your memory, Hodlnaut is the Singapore-based crypto platform that got caught with its hands in the Anchor Protocol cookie jar. The company lied about its losses, which became clear when it filed for creditor protection.

Hodlnaut has been under interim judicial management (IJM) since the end of August 2022.

The case has been contentious, with claims of impropriety leveled against both sides. But when a judge scheduled a hearing for August 7 to wind down the company, the end seemed in sight: Hodlnaut would be liquidated.

But just last week, a white knight came charging in and made an offer to Hodlnaut directors Simon Lee and Zhu Juntao. The digital asset exchange would rescue Hodlnaut by buying a 75% stake.

BUZZ!

Sorry, that’s not allowed when a company is under IJM.

The IJM is the only one in charge, not Lee and Zhu. The managers handling the Hodlnaut case, Angela Ee and Aaron Lee, weren’t happy with the attempt to strike a deal behind their backs.

Worse, the judge wasn’t happy. Justice Aedit Abdullah said he did not like behind-the-scenes “manoeuvring” and warned that as court officers, the IJMs should not be ignored, according to a recap of the hearing issued by Hodlnaut.

But despite the founders’ blunder, Ee and Lee are reviewing Lee and Zhu’s dealings with Opnx, according to an announcement on August 14. The two are supposed to report back to the judge at the next hearing, but no date has been set.

Maybe you’re wondering, who’s behind Opnx, Hodlnaut’s white knight? Things get weird when you lift the veil and find Kyle Davies and Su Zhu, the founders of an even bigger Singaporean crypto disaster: Three Arrows Capital (3AC).

Davies and Zhu are still wanted in the US and in Singapore for their involvement in 3AC. Both have moved to Dubai, where they started their new firm called – you guessed it – Opnx.

But some things never change. In May, Dubai regulators formerly reprimanded Davies and Zhu for operating an unregulated exchange.