The administration of the Singaporean crypto lender Hodlnaut decided to liquidate the business after an unsuccessful restructuring attempt.
According to the interim administration of Hodlnaut, the crypto lender's investors rejected the restructuring plans and were in favor of liquidating the business as it better suits their interests.. Specifically, the Algorand Foundation, one of the creditors, wrote in a statement that the liquidation “will maximize the company's remaining assets available for distribution.”.
The company previously fired 80% of its staff and informed users of an upcoming investigation by the Singapore police. Law enforcement suspects former Hodlnaut administration of making “false statements regarding the company's use of digital assets”.
The High Court of Singapore took into account the decisions of investors and agreed on the terms of the forced liquidation procedure for Hodlnaut to prevent the sale of crypto assets at a reduced price.
The day before, crypto-lender BlockFi notified its investors about the imminent start of compensation payments and the successful completion of legal procedures related to bankruptcy and self-liquidation.