As per a report by TechInAsia, Interim Judicial Managers (IJMs) requested Simon Lee and Zhu Juntao, pioneers of Hodlnaut, to provide certain documents the firm kept clandestine from a Singaporean court.
Hodlnaut Accused Of Allegedly Hiding Company Files
IJMs filed a claim against Hodlnaut, stating that the crypto lending platform concealed reports about its financial outlook. Thus, making it considerably torrid to evaluate the firm’s monetary position. In addition, Hodlnaut should have put its books in order before an appointment deadline with IJMs.
As a result, the Interim Judicial Managers tagged the founders of the digital asset company as uncooperative. Thus, it flagged its actions as inappropriate, especially under scrutiny. Further, Hodlnaut is said to have held back records and documents from IJMs.
Part of the supposed files constitutes over 1000 papers removed from Google Workspace following the assignment of IJMs. The alluded documents were expected to clarify obscure details about the company’s finances. However, due to these developments, IJMs is still trying to get a clear view of Hodlnaut’s financial stance.
Supposedly, it would have illuminated the story behind Hodlnaut’s liquidation. Decentralized Finance tokens account for many of the protocol’s assets and are available on several exchanges. These are Aave, Convex, Compound, and Curve.
The firm has $104 million, of which $25 million is on Centralized Exchanges (CEX). Meanwhile, its liabilities amount to $377 million, much higher than its acclaimed assets.
Simon Lee Criticized IJMs For False Claims
IJMs released the report a week after Hodlnaut’s co-founder Simon Lee called out the court officials for insincerity. Lee said the court fired Hodlnaut’s previous attorney despite pledging to keep him. Lee stated that interests were not aligned with the replacement.
Access to complete information about Hodlnaut is necessary for IJMs to declare it insolvent and well-off. Although, the chances of liquidation are high due to the firm’s reduction in staff. The numbers dropped to 3 from 38 in August.
Furthermore, IJMs’ report contained allegations of criminal acts against Hodlnaut’s founders. Reportedly, the firm advised its employees and close associates to move their funds before suspending withdrawals.
It is worth noting that Hodlnaut fell victim to the Terra Foundation implosion in May. Other victims of the incident include Three Arrow Capital, and Celcius, among others. Terra was said to have lost $60 billion in its ecosystem’s rundown.
Meanwhile, Hodlnaut downsized the impact of the Terra collapse, putting the directors in trouble. As per the record, it invested considerable funds in UST. In addition, it staked a significant portion into the now dysfunctional Anchor Protocol.
According to the Hodlnaut HK branch directors, the loss amounted to $189.7 million. Furthermore, after Hodlnaut opened up about the crash effect on it, the Monetary Authority of Singapore deprived it of its permit to operate. Therefore, it immediately led to discontinuing of its activities in the country.