Hodlnaut Collapse event
Overview
Singapore-based crypto lender Hodlnaut suspended customer withdrawals in August 2022 during the broader crypto credit crunch. Interim judicial managers subsequently found the company had incurred losses of approximately $189.7 million from its exposure to Terra's UST and Anchor Protocol collapse, and that its accounting records were not kept in proper order. The Singapore High Court ordered the firm to be wound up, terminating the judicial management process, and appointed the former interim judicial managers as liquidators. The proceedings have served as a benchmark for how Singapore courts classify crypto deposits in insolvency cases.
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Sources
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Questions on the record
What caused Hodlnaut to cease operations?
The platform halted withdrawals in August 2022 following significant financial damage. Judicial managers identified approximately $189.7 million in losses originating from the failure of Terra's UST and the Anchor Protocol, as well as funds stranded on the now-defunct FTX exchange.
Were depositors able to recover their funds?
No. Court documents revealed substantial net liabilities, and contemporaneous reports indicated that creditors had little prospect of recovering the majority of their deposited amounts.