24/7 Cryptocurrency News

Another CeFi Firm Hit With Liquidation Woes

Published by
Another CeFi Firm Hit With Liquidation Woes

Singapore based crypto lender Hodlnaut has filed an application with Singapore High court to be placed under judicial management. A while ago, the firm halted withdrawals, token swaps and deposits and is now taking measures to prevent liquidation.

Advertisement

Another CeFi firm hit with the contagion

A week after halting withdrawals among other operations, Hodlnaut announces to its users that in a bid to fend off bankruptcy or liquidation which will require it to sell off clients assets at current ‘depressed price’, it has opted for a safer option which is the judicial management process.

The team explains in their announcement that the moratorium will give them breathing space to focus on recovery because it automatically prevents legal claims and proceedings to be carried out against Hodlnaut.

We have applied for Mr Tam Chee Chong of Kairos Corporate Advisory Pte Ltd to be appointed as the Interim Judicial Manager, the announcement read, including that the application is yet to be heard in court and it’s still subject to change.

The centralized crypto lending platform was founded in 2019 by Juntao Zhu and Simon Lee and reportedly has over $12 million in Assets under Management.

Advertisement

Hodlnaut withdrew license application from MAS

On August 8th, the firm ‘regretfully’ announced the need to halt withdrawals, token swaps and deposits immediately due to recent market conditions. Reports have it that it is one of the crypto lenders hit by the UST Implosion.

In the same announcement, the Hodlnaut team relayed that they have informed the Monetary association of Singapore the intention to withdraw their license application to provide regulated digital payment token services.

Finally, they said they are consulting with Damodara Ong LLC “on the feasibility and timelines of their intended execution plan and are strategising a recovery plan with users’ best interests in mind.” Today’s announcement however reveals that the moratorium/judicial management is the recovery plan.

Advertisement

Share
Abigal Vee

Abigal .V. is a cryptocurrency writer with over 4-years of writing experience. She focuses on news writing, and is skilled in sourcing hot topics. She’s a fan of cryptocurrencies and NFTs.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • Bitcoin News

U.S. Treasury To Ease Tax Rule on Unrealized Bitcoin Gains, Aiding Saylor’s Strategy

The U.S. Treasury and IRS have released an interim guidance, which highlights plans to ease…

October 1, 2025
  • 24/7 Cryptocurrency News

Trump-Backed World Liberty (WLFI) Plans RWA Tokenization Paired with USD1 Stablecoin

Trump Family's World Liberty Financial has unveiled big real-world asset (RWA) tokenization plans on Wednesday,…

October 1, 2025
  • 24/7 Cryptocurrency News

Stripe Eyes U.S. Banking Charter, Pioneers One-Click Stablecoin Issuance for Firms

Fintech giant Stripe has unveiled a suite of tools to enable businesses to tap into…

October 1, 2025
  • 24/7 Cryptocurrency News

Breaking: Metaplanet Expands Treasury With 5,268 BTC Purchase, Climbs to 4th Largest Holder

Metaplanet has expanded its Bitcoin portfolio with another purchase. The Tokyo-listed firm is now the…

October 1, 2025
  • Bitcoin News

BREAKING: Nasdaq Files with US SEC to List BlackRock Bitcoin Premium Income ETF

Nasdaq has officially filed to list and trade BlackRock iShares Bitcoin Premium Income ETF with…

October 1, 2025
  • 24/7 Cryptocurrency News

Mr Beast, Whales Buy ASTER Token Amid 20% Crash, What’s Next?

While the ASTER token has crashed 20% in the last 24 hours, to test the…

October 1, 2025