Hodlnaut exploring option to allow withdrawal of deposits with interest before closing accounts
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While Hodlnaut is exploring withdrawal options, it is also preparing to reduce the interest on deposits for users to zero at 5 pm Hong Kong time next Monday.
Hodlnaut said that if the application for a judicial manager is approved at a hearing next Monday, the manager will take over as director of Hodlnaut to decide on operations, and the company will be able to protect itself from creditors claims and litigation.
The potential interim judicial manager can assess and propose a recovery plan to creditors for a vote, Hodlnaut said.
Hodlnaut also acknowledged in the blog that the company has pending litigation between the company and the Attorney General of Singapore/Singapore Police Force but did not disclose any further details.
Unlike other crypto lenders that went insolvent, Hodlnaut did not apply for a moratorium, like Vauld and Zipmex did, but sought judicial management.
Hodlnaut also said they have laid off about 40 employees, or 80 percent of the workforce, since the withdrawal freeze in early August.
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