Defunct cryptocurrency lender Hodlnaut has been granted protection from its creditors by Singapore’s High Court.
The court decision comes after Hodlnaut suspended withdrawals from its accounts and filed for bankruptcy earlier in August.
The Singapore High Court has now placed Hodlnaut under judicial management, enabling the cryptocurrency company to be restructured under court supervision.
Accounting firm Ernest & Young has been named as the judicial manager of Hodlnaut.
Hodlnaut, which is based in Singapore, is the latest in a series of cryptocurrency firms to run into financial difficulties following a selloff in digital coins and tokens that started in May with the collapse of two stablecoins linked to the U.S. dollar, Luna (LUNA) and TerraUSD (USTC).
Hodlnaut has also eliminated 40 employees in recent weeks and disclosed that is being investigated by the Singapore police.
Earlier this week, authorities in Singapore announced plans to tighten regulations related to the trading of cryptocurrencies among retail investors.
