Embattled crypto borrowing and lending platform Hodlnaut has been identified as making large transactions on chain despite being placed under judicial management by the Singapore High Court.
Judicial management is similar to Chapter 11 bankruptcy in the US, where the court appoints an independent party to manage the company’s affairs while it attempts to rehabilitate. The company is also temporarily shielded from legal proceedings by third parties like creditors.
However, eagle-eyed users spotted an account linked to the Singapore-based platform deploying 2,000 ETH (approximately US$3 million) onto Ribbon Finance’s covered calls vault. Hodlnaut has since moved the funds onto decentralised protocol AAVE.
Read more: SG Hodlnaut Stakers Reveal Why They Didn’t Withdraw Ahead of Freeze
Such big and risky bets are uncalled during this period, especially when Hodlnaut’s users are still seething about the platform’s collapse. Just look at the Hodlnaut: Unofficial Backup Group on Telegram.
Hodlnaut is one of the many casualties in US$2 trillion market meltdown after the collapse of Luna and TerraUSD in May. Other firms include Three Arrows Capital (3AC), Celsius and Voyager, all of which have filed for bankruptcy in recent months.