The High Court has issued a liquidation order for Hodlnaut, a cryptocurrency lending platform based in Singapore. Aaron Loh Cheng Lee and Ee Meng Yen Angela from EY have been appointed as joint liquidators. This decision follows their initial appointment as interim judicial managers in August, assigned to oversee Hodlnaut's operations after the platform incurred substantial losses of approximately $190 million due to investments in the collapsing Terra ecosystem.
According to a judicial report, Hodlnaut's directors allegedly failed to fully disclose their involvement with the Terra/Luna platform before and after its collapse in May 2022. This situation placed Hodlnaut among other financial entities, including Celsius, Voyager Digital, and Three Arrows Capital, all affected by their association with Terra's algorithmic stablecoin UST.
The court order, dated November 10, mandates the winding up of Hodlnaut, leaving over 17,000 users of the platform uncertain about the recovery of their funds. Hodlnaut, which previously offered interest rates as high as 12.73% on deposits, had suspended customer withdrawals in July 2022. The appointed liquidators plan to provide bulk updates online due to the large volume of creditors, making individual responses impractical.
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