Coinfeeds Daily → Singapore-based Cryptocurrency Lending Firm Hodlnaut Faces Liquidation

Singapore-based Cryptocurrency Lending Firm Hodlnaut Faces Liquidation

Published: Nov 11, 2023 | Last Updated: Nov 11, 2023
Howard Kane

Hodlnaut's unsuccessful restructuring and sale attempts lead to freezing of users' funds since August 2022

Hodlnaut, a Singapore-based cryptocurrency lending firm, is heading towards liquidation after unsuccessful attempts at restructuring and selling the company. The High Court of Singapore has ordered the liquidation, which has led to the freezing of users' funds since August 2022.

Failed Restructuring and Sale Efforts

The company had previously applied for court-appointed interim judicial managers in a bid to avoid forced liquidation. However, creditors rejected a restructuring plan and voted for liquidation. The company's creditors include 17,000 users and major creditors such as Samtrade Custodian, S.A.M. Fintech, and the Algorand Foundation.

Market Conditions and Financial Troubles

Hodlnaut suspended deposits and withdrawals in August due to adverse market conditions. The company's financial troubles were exacerbated by the collapse of the Terra ecosystem and Three Arrows Capital, as well as the decline in the value of the FLEX token. Hodlnaut held over $13 million in assets in the now bankrupt FTX exchange and lost $189.7 million in the Anchor Protocol.

Impact on Users and Regulatory Actions

The liquidation order, filed on November 10th, has had a significant impact on Hodlnaut's users. The company had halted withdrawals and pulled its license application with the Monetary Authority of Singapore. As a result of the liquidation, users' funds have been frozen since August 2022, causing distress and uncertainty among the platform's users.


The case of Hodlnaut serves as a reminder of the risks associated with cryptocurrency lending platforms. Users and investors should exercise caution and conduct thorough due diligence before engaging with such platforms. Regulatory bodies also have a role to play in ensuring that these platforms operate within the confines of the law to protect users' interests.

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