Hodlnaut has sought protection from creditors in Singapore. The crypto bank had to suddenly stop withdrawals last week due to financial problems. The company announced this in a new statement.
This week, an application was filed with the Singapore High Court to seek protection from legal claims and proceedings from creditors.
https://twitter.com/dacheng96948902/status/1559452622004039680
In doing so, they are embarking on a similar journey as Zipmex and Vauld, who have also already requested protection from creditors. Hodlnaut is working with a number of legal specialists to liquidate their assets. Admittedly at lower market prices, but the proceeds are needed to pay off some of the debts. A further update is expected on 19 August.
Hodlnaut was founded in 2019 as an interest platform on the model of Celsius. Users could deposit their bitcoin and in return receive interest on their bitcoin. By December 2021, the company had over $500 million in assets under management and 10,000 active users.
Customers cannot currently access their bitcoin or crypto assets, and it is unclear when these assets will become available. That is the risk of storing your bitcoin with a third party. As soon as they run into trouble, your bitcoin becomes insecure.
https://www.indexuniverse.eu/cryptobank-asks-protection-from-legal-claims/
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