Cryptobank asks protection from legal claims

Last Updated: 18 August 2022

Hodlnaut has sought protection from creditors in Singapore. Last week, due to financial problems, the crypto bank had to suddenly stop withdrawals. 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.

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, 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.

  • Gabriele Spapperi

    Gabriele Spapperi is a veteran cryptocurrency investor and blockchain technology specialist. He became fascinated with Bitcoin and distributed ledgers while studying computer science at MIT in 2011.

    Since 2013, Gabriele has actively traded major cryptocurrencies and identified early-stage projects to invest in. He contributes articles to leading fintech publications sharing his insights on blockchain technology, crypto markets, and trading strategies.

    With over a decade of experience in the crypto space, Gabriele provides reliable insights and analysis on the latest developments in digital assets and blockchain platforms. When he's not analyzing crypto markets, Gabriele enjoys travel, golf, and fine wine. He currently resides in Austin, Texas.

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