Numerous digital asset businesses were negatively impacted by the disruption of Terra’s ecosystem 1.5 years ago, including cryptocurrency lenders like BlockFi, Celsius, and Hodlnaut. Several of the now-defunct companies looked for methods to recover or make their users whole in the 18 months that followed. Instead of reorganization, Hodlnaut has been placed under liquidation.
According to early reports from 2022, the cryptocurrency lender with its headquarters in Singapore has virtually lost nearly $200 million after the UST crisis. Later, evidence of the company’s management’s complete exposure to Terra was concealed, according to court records. Creditors and the judicial management cast their votes in favour of liquidation as opposed to possible reorganization. As the former temporary judicial managers, Aaron Lee and Angela Ee were notified of the liquidation judgment, creditors have gotten their wish, according to a court filing dated November 10 with the High Court of Singapore.