The Singapore High Court has made a significant decision regarding Hodlnaut, a crypto lender, by ordering its liquidation. The court's objective is to ensure that the company's 17,000 customers are reimbursed following the aftermath of Terra's decline and Hodlnaut's subsequent $193 million deficit.
Hodlnaut, a Crypto Lender, Faces a $193M Shortfall
Hodlnaut encountered difficulties when it temporarily suspended customer withdrawals in July 2022, citing unfavorable market conditions. In an attempt to salvage its operations, the company sought the court's protection through judicial management. Court documents revealed that Hodlnaut is facing a massive shortfall of approximately $193 million, highlighting the vulnerability of crypto lenders to market volatility.
OPNX, which has questionable connections to Three Arrows Capital (3AC), proposed a takeover of Hodlnaut with an offer of $30 million in FLEX tokens. However, the interim judicial managers of Hodlnaut deemed the offer inadequate due to the illiquidity of the tokens. As a result of its insolvency, Hodlnaut was ordered to wind up on November 10, 2023, by Judge Aedit Abdullah.
As the liquidators assume control, Hodlnaut faces the challenging task of unwinding its operations. EY Corporate Advisors issued a circular stating that the process will prioritize transparency and provide regular updates to creditors. Aaron Loh Cheng Lee, one of the appointed liquidators from EY, stated, "Responding to individual creditor queries may not be practical or cost-effective. Instead, the liquidators will consolidate their answers to creditor queries in their updates to all potential creditors."
We would love to hear your thoughts and opinions on Hodlnaut's mandated liquidation. Please share them in the comments section below.
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What is the best precious metal to invest in?
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A precious metal IRA lets you diversify your retirement savings to include gold, silver, palladium, rhodium, iridium, osmium, osmium, rhodium, iridium and other rare metallics. These precious metals are extremely rare and valuable. These metals are great investments and can help protect your financial future from economic instability and inflation.
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- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
- Yahoo Finance – Barrick Gold Corporation Stock Price, News & Quote – Barrick Gold Corporation (GOLD).
The History of Gold as an Asset
Gold was a currency from ancient times until the early 20th century. It was universally accepted and loved for its beauty, durability, purity and divisibility. It was also traded internationally due to its high value. There was no international standard for measuring gold at that time, so different weights and measures were used around the world. For example in England, a pound sterling equals 24 carats. In France, a livre tournois equals 25. Carats of golden. Germany had one mark which equals 28. Carats.
In the 1860s, the United States began issuing American coins made up of 90% copper, 10% zinc, and 0.942 fine gold. This caused a drop in foreign currency demand which resulted in an increase of their prices. At this point, the United States minted large amounts of gold coins, causing the price of gold to drop. Due to the excessive amount of money flowing into the United States, they had to find a way for them to repay some of their debt. They decided to return some of the gold they had left to Europe.
Because most European countries did not trust the U.S. dollar, they started accepting gold as payment. However, many European nations stopped using gold to pay after World War I and started using paper currency instead. The value of gold has significantly increased since then. Today, although the price fluctuates, gold remains one of the safest investments you can make.
By: Jamie Redman
Title: Singapore High Court Orders Liquidation of Hodlnaut, Providing Reimbursements to 17,000 Customers
Sourced From: news.bitcoin.com/singapore-high-court-mandates-hodlnaut-liquidation-sets-stage-for-17000-customer-reimbursements/
Published Date: Tue, 14 Nov 2023 09:30:46 +0000