Upon the crash of Terra’s ecosystem a year and a half ago, the ripple effects harmed many digital asset companies in one way or another.
Crypto lenders, such as BlockFi, Celsius, and Hodlnaut, were among the biggest victims, whether due to exposure to the failed project or inappropriate management. In the 18 months that followed, many of the defunct firms were looking for ways to recover or make users whole. In the case of Hodlnaut, the company has been ordered into liquidation instead of restructuring.
- Initial reports from 2022 claimed that the Singapore-based crypto lender had lost almost $200 million following the UST crash to essentially zero.
- Court documents revealed later informed that the company’s management hid proof of the firm’s entire exposure to Terra. Nevertheless, the judicial management and the creditors voted for liquidation instead of potential restructuring.
- According to a court filing from Nov 10 with the High Court of Singapore, creditors have received their wish as the former interim judicial managers, Aaron Lee and Angela Ee, informed of the liquidation decision.
The Company has a substantial volume of creditors (including over 17,000 platform users), and as such, responding to all creditor queries individually may not be practicable or economical. The Liquidators will instead consolidate their answers to creditor queries within their updates to all potential creditors. The Liquidators will continue to endeavor to update creditors regarding the administration of the Company as regularly as possible via email and broadcast the same on our website.