Almost a month after Hodlnaut froze withdrawals on its, the cryptocurrency lender has been placed under judicial management by a Singapore court. For clarity, Judicial management is essentially a debt restructuring process where an independent judicial manager is appointed by a court to oversee the affairs, business, and property of a company in financial distress.

With the latest judgment delivered on 29th August 2022 by the Singapore Court, Hodlnaut will now be temporarily protected from legal proceedings by third parties. This will allow the company to rehabilitate and focus on restructuring the company.

The lender had earlier stated that undergoing judicial management would provide it with the best time and chance of recovery instead of filing for a suspension, which could trigger a forced liquidation of all their assets.

From the latest update, the Singapore-based company’s legal representatives attended a court hearing. It was at this hearing that the Judge appointed Ee Meng Yen Angela and Aaron Loh Cheng Lee, care of EY Corporate Advisors Pte. Ltd., as the Interim Judicial Managers of Hodlnaut.

Hodlnaut is the latest one of several firms in the cryptocurrency industry, including hedge fund Three Arrows Capital and crypto lenders Voyager Digital and Celsius Network, to stumble under the current crashing market conditions following their exposure to the Terra ecosystem that crashed in May.

Since Hodlnaut froze all activity on its platform, it has laid off around 80% of its workforce which is approximately 40 people. In a bid to cut operational costs and stabilize liquidity, the company even slashed its interest rates to a 0% annual percentage rate.

Featured Image Source: www.cryptopotato.com