Crypto lender Hodlnaut seeks creditor protection to circumvent forced liquidation

Hodlnaut has applied to the Singapore High Court to be put under judicial management, the cryptocurrency lender said in a blog post Tuesday."We are aiming to avoid a forced liquidation of our assets as it is a suboptimal solution that will require us to sell our users’ cryptocurrencies such as BTC, ETH and WBTC at these current depressed asset prices," Hodlnaut said.The company said that its application, which will temporarily protect itself from legal claims, was filed on August 13. That comes just five days after it suspended withdrawals, token swaps and deposits in the face of a market downturn.Its next update is scheduled for August 19.A number of firms have been impacted by the crypto-market slump due to liquidity issues fueled by falling token prices. Crypto exchange Zipmex, for instance, filed for bankruptcy protection towards the end of July.Previously, (July 6) Crypto brokerage Voyager Digital filed for Chapter 11 bankruptcy.