Singapore-based crypto lending provider Hodlnaut has decided to liquidate following an unsuccessful restructuring attempt. According to documents released by the audit firm EY, liquidation orders were issued against Hodlnaut by judicial managers on November 10.
Effects of Luna and FTX Incidents Persist
The events began when the company announced the suspension of withdrawal services for its 17,000 users and the withdrawal of its license application from the Monetary Authority of Singapore, citing significant financial losses in the Terra/Luna incident and the collapse of FTX.
Millions of Dollars in Losses!
According to documents disclosed by EY, Hodlnaut suffered a loss of $190 million in the failed DeFi platform Anchor Protocol for UST in the spring months of the previous year. Additionally, the company held over $13 million in assets on the bankrupt FTX exchange. Following these losses, Hodlnaut attempted a restructuring but faced pressure from creditors.
Finally, a document published by the audit firm EY reveals that the company will be liquidated by previously appointed judicial managers.
Source: The Block