Liquidated Hodlnaut to Repay 17,000 Customers

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  • Crypto exchange Hodlonaut has officially entered liquidation, a year after filing for creditor protection
  • The company lost over $200 million during the 2022 crypto contagion
  • Over 17,000 creditors face uncertainty about repayment levels after Hodlnaut’s collapse

Shuttered crypto exchange Hodlnaut is set to undergo liquidation, the company’s former interim judicial managers have confirmed. A winding-up order was officially submitted to the High Court of Singapore on November 10, more than a year after the company filed for creditor protection. Hodlnaut was a victim of the 2022 crypto contagion and lost approximately $189 million when it collapsed, leaving more than 17,000 creditors with an anxious wait over the level of their repayments. 

Crypto Contagino Impact Saw Hodlnaut Close

Hodlnaut launched in 2019 and ran for three years until its exposure to the likes of FTX and Terra saw it fold; the company lost around $190 million when the Terra network collapsed and had over £13 million stuck on FTX when it, too, went down.

The company halted withdrawals, token swaps, and deposits last August, although the depth of the issues was hidden at the time. It entered bankruptcy and tried to start the rebuilding process just weeks afterward, but its proposed candidate for the position of rehabilitation overseer was rejected by the court. By this point, numerous allegations of mismanagement had been publicized, in particular the company’s exposure to the Terra UST crash. 

It was also revealed during the fallout from the collapse of FTX that Hodlnaut had $13.3 million worth of cryptocurrency on that platform too. 

Creditors Voted for Liquidation

Despite a restructuring plan finally being proposed earlier this year, Hodlnaut creditors opted for liquidation, deeming it more advantageous to their interests than trying to relaunch the exchange. The company will now be wound up while creditors await news about how much of their holdings they will get back.