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Hodlnaut exploring option to allow withdrawal of deposits with interest before closing accounts


forkast.news 19 August 2022 10:43, UTC
Reading time: ~2 m

The Singapore and Hong Kong-based crypto lender said it was exploring options to allow users to withdraw deposits at an undisclosed discount rate, while seeking Singapore court approval to appoint a judicial manager for the company, according to a post on its blog on Friday.

See related article: How a market slump may be helping Singapore’s stance against retail crypto

Fast facts

  • While Hodlnaut is exploring withdrawal options, it is also preparing to reduce the interest on deposits for users to zero at 5 pm Hong Kong time next Monday.
  • Hodlnaut said that if the application for a judicial manager is approved at a hearing next Monday, the manager will take over as director of Hodlnaut to decide on operations, and the company will be able to protect itself from creditors claims and litigation.
  • The potential interim judicial manager can assess and propose a recovery plan to creditors for a vote, Hodlnaut said.
  • Hodlnaut also acknowledged in the blog that the company has pending litigation between the company and the Attorney General of Singapore/Singapore Police Force but did not disclose any further details.
  • Unlike other crypto lenders that went insolvent, Hodlnaut did not apply for a moratorium, like Vauld and Zipmex did, but sought judicial management.
  • Hodlnaut also said they have laid off about 40 employees, or 80 percent of the workforce, since the withdrawal freeze in early August. 

See related article: Why Singapore may be the ideal place for companies to rebuild post-crypto winter

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