The Continued Struggles of Hodlnaut
Creditors of the Singapore-based cryptocurrency lender Hodlnaut are once again waving the white flag, opting for liquidation as their desired outcome after months of uncertainty. Since August 2022, Hodlnaut has been trapped in judicial management, which has turned out to be more like all-you-can-eat legal buffet than a rescue mission.
No White Knight in Sight
Interim judicial manager Aaron Loh Cheng Lee delivered the sobering news in a recent circular. Apparently, there’s been a notable lack of superhero investors—those ‘white knights’ we all love to read about. As of April 25, the IJMs stated that creditors holding about 55.38% of claims, totaling a whopping 228.3 million Singapore dollars (around $170.5 million), prefer liquidation rather than a cumbersome restructuring.
Who’s Really Crying for Restructuring?
In a plot twist you might see on a bad soap opera, only 2.42% of claims supporting restructuring were from company directors. The majority creditors, including Samtrade Custodian and S.A.M. Fintech, are now in their own liquidating mess. No one knows if they’re playing a game of ‘Who’s more Liquid?’ or just trying to drown in a sea of red ink.
The Court’s Directive: Wind Up This Mess
The Singapore court has taken a decisive stance by directing the IJMs to file for Hodlnaut’s wind-up and to discharge themselves. It’s like telling a struggling contestant on a reality show to just pack their bags and leave the island. Not exactly the lifeline the company was hoping for!
Recap of the Rollercoaster Ride
Let’s not forget that Hodlnaut halted withdrawals on August 8, 2022, due to a dramatic liquidity crisis that could rival any summer blockbuster. The company sought judicial management soon afterward, hoping to escape the legal pitfalls threatening to entangle it like a poorly thrown lasso. Unfortunately, their efforts to avoid a forced liquidation seem more outdated than a flip phone.
Questions Arise about Fair Play
The situation grows stickier with allegations of misrepresentation regarding Hodlnaut’s exposure to TerraUSD Classic (USTC), previously known as Terra stablecoin. It appears the company held more than $150 million in the defunct coin, contrary to their claims. One can only wonder what kind of hide-and-seek game they were playing with their investors. Did they think deleting thousands of documents would just make everything go poof?
Conclusion: The Road Ahead
As the creditors rally for a liquidation, it begs the question: is the end of Hodlnaut at hand? Or could there be another twist in this crypto narrative that keeps us all on the edge of our seats? For now, the show’s not over until the gavel drops, but the forecast remains cloudy for Hodlnaut and its investors.
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