Singapore-based crypto lending agency Hodlnaut was positioned below interim judicial administration, a type of creditor safety program, by the Singapore court docket on Aug. 29.

The court docket orders got here three weeks after Hodlnaut froze all buying and selling actions and withdrawals on its platform citing a liquidity disaster. In an official weblog post on Aug. 30, the crypto lending platform notified its customers that Ee Meng Yen Angela and Aaron Loh Cheng Lee, care of EY Company Advisors, have been appointed as interim judicial managers. The weblog submit learn:

“The Court docket has delivered judgment on 29 August 2022, and has been confirmed that Hodlnaut might be positioned below Interim Judicial Administration.”

The crypto lender sought judicial administration to keep away from compelled liquidations within the bear market. The mentioned creditor safety program below Singapore legislation permits financially troubled corporations to rehabilitate themselves. Below this legislation, the court docket appoints an officer referred to as the judicial supervisor who takes over the cost from the corporate’s director in the meanwhile.

As Cointelegraph reported earlier this month, Hodlnaut lower 80% of its workforce earlier than making use of for judicial administration. The agency hopes to make the most of the judicial administration interval to revive its asset-to-debt ratio to 1:1 to permit customers the flexibility to withdraw their preliminary cryptocurrency deposits.

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The crypto lender knowledgeable earlier that they have been exploring the choice to permit customers to withdraw their preliminary deposits with curiosity accrued in full earlier than closing their accounts, which is now topic to the approval by newly appointed judicial managers

Hodlnaut is one amongst many crypto lending corporations that fell prey to the crypto contagion attributable to the downfall of the now-defunct TerraUSD (UST) algorithmic stablecoin. The implosion of UST led to the downfall of a $40 billion Terra ecosystem, and lots of crypto lending corporations with publicity to UST fell finally.