Hodlnaut is moving toward liquidation after successful restructuring, sale efforts.

Crypto lender Hodlenote's days appear to be numbered after Singapore's High Court suspended judicial review and ordered its takedown. User funds are blocked from August 2022.

Former Hodlnaut interim justice manager (IJM) Aaron Loh Cheng Lee announced in a letter dated Nov 10 and posted on EY's website that he and fellow IJM Ee Meng Yen Angela had stepped down and been appointed liquidators.

The liquidation decision was made in a Singapore court's order on the application. The decision is currently being published, as noted in Lee's letter.

Singapore-based Hodlnaut suspended deposits and withdrawals at the same time it filed its license application with the Monetary Authority of Singapore in 2015. Discontinued August 8, 2022. The company said the decision was based on “recent market conditions.” According to Lee's letter, Hodlenote's creditors include 17,000 consumers. Major lenders include Samtrade Guardian, Sam Fintech and Algorand Foundation.

Related: Algorand Foundation Lists $35M Exposure to Crypto Lender Hoddlenote

Hodlnaut appears to have been a victim of the systemic turmoil that hit the industry in the wake of the collapse of Terra Ecosystem and Three Arrows Capital (3AC). It had no exposure to 3AC, but at some point it held around $150 million in Terra's stablecoin since it was named TerraUSD Classic (USTC). Later it took another financial crisis with the collapse of FTX.

The price of FLEX tokens — the digital currency of the proposed settlement for the $30 million purchase of Hoddlenote — has fallen by 90 percent since the offer was made in early August. https://t.co/PDgFgiKp4P

— Cointelegraph (@Cointelegraph) September 19, 2023

Hodlnaut avoided forced liquidation by applying for and accepting court-appointed IJMs. It subsequently obtained creditor protection and reduced its workforce by 80%. The USTC's delay in reporting the holdings is said to have faced a police investigation.

Creditors rejected the restructuring plan in January and voted overwhelmingly to reject it in April. OPNX, founded by former 3AC founders Su Xu and Kyle Davis, offered $30 million worth of FLEX tokens for a 75% stake in Hoddlenote in August 2023, but this offer was rejected by IJMs the following month after the price. FLEX has failed by 90%.

A US court approved the bankruptcy plan of crypto lender Celsius on November 9.

Magazine: 3AC on the run as OPNX faces new threat: Asia Express