Cryptocurrency bank Hodlnaut said on Tuesday that it has been placed under provisional judicial administration by the Singapore Supreme Court after suspending withdrawals by customers earlier this month.
The status allows a company in financial difficulties to be restructured under judicial supervision.
The Singapore-based cryptocurrency bank said the court had appointed Ee Meng Yen Angela and Aaron Loh Cheng Lee of EY Corporate Advisors as interim trustees.
“We will not be able to provide further information at this time, but we look forward to providing further updates as soon as our interim court administrators determine that it is necessary to do so,” Hodlnaut said.
Earlier this month, the institution suspended withdrawals, swaps and deposits to focus on stabilizing its liquidity and preserving assets.
Hodlnaut is the latest in a series of cryptocurrency companies and banks to struggle after a sharp sell-off in digital asset markets that began in May with the collapse of Luna and TerraUSD tokens.
The bank also said it had laid off around 40 employees, in addition to disclosing the existence of a Singapore police investigation against the company.
Source: CNN Brasil
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