Hodlnaut, a Singapore-based cryptocurrency and borrowing platform, was recently placed under Interim Judicial Management by the Singaporean High Court.
“Judicial management is a method of debt restructuring where an independent judicial manager is appointed to manage the affairs, business and property of a company under financial distress”, according to Singapore Legal Advice.
It is an option pursued by financially distressed companies to realise its assets in a more advantageous way than if it were to simply be forced to liquidate at that point.
Hodlnaut sought judicial management, in order to avoid liquidating their current holdings at such low prices.
Hodl Or Yolo
Despite their current status, Hodlnaut was spotted making transactions on-chain.
An account linked to the platform was spotted deploying into Ribbon Finance’s covered calls vaults. A quick look at the transaction shows that this was for 1,999 $ETH, or approximately USD$3 million at the time of writing.
Covered calls is an options trading strategy that involves selling a call option while owning the underlying security.
While covered calls are a viable strategy, doing so in such a volatile market, ahead of the merge, and after suspending user withdrawals seems sketchy at best.
Since then, however, Hodlnaut has apparently withdrawn the money and placed it into decentralized lending protocol Aave.
However, this may not be the end of Hodlnaut’s attempt to recoup some funds.
Despite being severely impacted by the turbulent crypto markets, it seems that the platform is still trying to squeeze out any dollar left, even if it means making risky plays.
[Editor’s Note: This article does not represent financial advice. Please do your own research before investing.]
Featured Image Credit: ChainDebrief