According to CryptoPotato, the crash of Terra's ecosystem a year and a half ago had ripple effects that harmed many digital asset companies, including crypto lenders like BlockFi, Celsius, and Hodlnaut. In the 18 months that followed, many of the defunct firms sought ways to recover or make users whole. However, Hodlnaut 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 later revealed that the company's management hid proof of the firm's entire exposure to Terra. The judicial management and creditors voted for liquidation instead of potential restructuring. According to a court filing from November 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. The liquidators will consolidate their answers to creditor queries within their updates to all potential creditors and continue to update creditors regarding the administration of the company as regularly as possible via email and broadcast the same on their website.
