Goodluck Awele 
Creditors of Singapore-based cryptocurrency lender Hodlnaut, under judicial management since August 2022, have reaffirmed their intention to liquidate the business.
In a circular updating the case, the interim judicial manager (I.J.M.) Aaron Loh Cheng Lee stated that no white knight investor is on the horizon.
According to a circular from I.J.M.s dated April 25, users representing approximately 55.38 percent of creditors with claims totaling 228.3 million Singapore dollars (roughly $170,5 million) have indicated they prefer liquidation to restructure.
Despite the founders’ efforts to locate new investors, new sources of capital have yet to be identified, the letter stated.
There appears to be no indication of a white knight investor to date, and hence no prospect of any fresh capital injection.
Only users with 2.42 percent or more claims supported reorganization, and almost all of those users were company directors.
The “major” creditors were opposed to the proposed mediation. The main creditors are Samtrade Custodian, S.A.M. Fintech, and the Algorand Foundation, all liquidated. Algorand has exposure of $35 million to Hodlnaut.
According to the letter, the Singapore court instructed the I.J.M.s to petition to “wind up” the company and seek discharge.
Hodlnaut announced on August 8, 2022, that it would suspend withdrawals due to a liquidity crisis. The following week, it filed for judicial management, which under Singaporean law, provides temporary protection against legal claims.
The company stated at the time, “We are attempting to avoid a forced liquidation of our assets as it would require us to sell our users’ cryptocurrencies such as BTC, ETH, and WBTC at these depressed asset prices.”
Loh Cheng Lee and an additional I.J.M. are Ernst & Young corporate advisors.
https://twitter.com/Pukimakinc/status/1647532191046352896
Police were reportedly investigating Hodlnaut for misrepresenting its exposure to the Terra stablecoin, now known as TerraUSD Classic (USTC).
Despite claims to the contrary, on-chain data indicates the company held at least $150 million worth of the defunct coin. Executives of the company purged thousands of documents to conceal their exposure.
In January, creditors began pursuing the company’s liquidation.
