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.

Author

  • I first came into contact with Bitcoin in 2017 - and since then, the topic of cryptocurrencies has never left me. For this reason, I have also made BTC & Co. part of my profession and write as a freelance author for crypto publications.

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