Cryptocurrency lending platform Hodlnaut has filed an application to be placed under judicial management with the Singapore High Court. The company made this filing just a week after suspending its services. The ailing cryptocurrency lender will be able to rehabilitate it’s business if they come under judicial management.

If the application is successfully reviewed and approved, an independent officer of the court will be appointed to take charge of the company’s affairs in place of the current company executives. This filing will also provide some much-needed respite from creditors as it provides a moratorium against legal proceedings against Hodlnaut.

In an update from the crypto lender, the main aim of the filing is to avoid a forced liquidation of the company’s assets. A forced liquidation will require the disposal of it’s customer’s cryptocurrency assets at the current low prices. Hodlnaut believes that undergoing judicial management is the best course for a speedy recovery of the company.

The company has applied for Tam Chee Chong of Kairos Corporate Advisory Pte Ltd to take over as the interim Judicial Manager and subsequently become the Judicial Manager. According to announcements, these applications have not yet been heard in court although they have been filed. Hodlnaut speculates that it might take up to several months to obtain the judicial management order from the Singapore High Court.

Hodlnaut is the latest cryptocurrency firm to take the hit from the harsh market conditions. Popular cryptocurrency whistleblower, FatMan has alleged that the company had several millions of dollars with of exposure to Terra’s Luna back in June. However the extent of the damage wasn’t revealed until June.

Hodlnaut has already informed the public that it is actively working on a recovery plan. The company froze customer wallets and withdrawals and announced the unplugging of all its social media accounts except its official telegram and Twitter channels.

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