After the troubled cryptocurrency lender froze withdrawals earlier this month, Hodlnaut said on Tuesday that the Singapore High Court has put it under temporary judicial control.
Related: Singapore says retail investors are “irrationally uninformed” of cryptocurrency risks and plans stronger controls.
A financially challenged corporation can be reformed under court supervision under judicial management.
The Singapore-based cryptocurrency company said that Ee Meng Yen Angela and Aaron Loh Cheng Lee of EY Corporate Advisors were named as interim judicial managers by the court.
Hodlnaut said, “At this time, we won’t be able to give any more information, but we expect to give updates whenever our IJMs (Interim Judicial Managers) think it’s important.”
Hodlnaut stopped withdrawals, swaps, and deposits at the beginning of last month so that it could keep its cash flow stable and protect its assets.
After a strong sell-off that started in May with the fall of two paired coins, Luna and TerraUSD, Hodlnaut is the latest global crypto player to run into trouble.
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The company also said that it had fired about forty people and that the Singapore police were looking into what happened.