Singapore-based Hodlnaut is the latest crypto firm to come under pressure with the application for creditor protection in in the city-state.
Hodlnaut has filed an application with the Singapore court to be put under judicial management, according to a statement. If approved, this will allow the firm to gain temporary protection against any legal claims.
According to Hodlnaut’s statement, the application was filed on August 13, five days after the crypto lender froze withdrawals.
«We are aiming to avoid a forced liquidation of our assets as it is a suboptimal solution that will require us to sell our users’ cryptocurrencies at these current depressed asset prices,» Hodlnaut said.
Singapore Crypto Pressures
This marks the latest firm to feel the pain from market turmoil, following fellow Singapore crypto exchange Zipmex’s successful application for credit protection received on Monday.
Separately, the Monetary Authority of Singapore rescinded Hodlnaut’s in-principle approval to operate under the Payment Services Act earlier this month.
