Hodlnaut Founders Deleted Over 1,000 Files, Shows Court Report

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A Sin­ga­pore court report has dis­closed that bank­rupt cryp­to lender Hodl­naut has been hid­ing some doc­u­ments from the court-appoint­ed Inter­im Judi­cial Man­agers (IJMs).

The IJMs at EY Cor­po­rate Advi­sors filed the report, ask­ing the Sin­ga­pore High Court to com­pel Hodl­naut founders Zhu Jun­tao and Simon Lee to present the hid­den doc­u­ments, Techi­nA­sia report­ed.

Accord­ing to the report: “The IJMs have encoun­tered sig­nif­i­cant dif­fi­cul­ties in piec­ing togeth­er an accu­rate and com­plete pic­ture of the company’s finan­cial posi­tion. Among oth­er rea­sons, the company’s account­ing and finan­cial records have not been prop­er­ly main­tained pri­or to the IJMs appointment.”

Hodlnaut Founders Reportedly Uncooperative

The IJM accused the Hodl­naut founders Zhu Jun­tao and Simon Lee and some unnamed employ­ees of being unco­op­er­a­tive. Report­ed­ly, they are obstruct­ing judi­cial man­agers from access­ing and con­trol­ling sev­er­al vital doc­u­ments and records.

These include over 1,000 files delet­ed from the Google Work­space since the IJMs were appointed.

The doc­u­ments would have helped the IJMs to under­stand the finan­cial posi­tion of cryp­to lender Hodl­naut bet­ter. There’s also a prob­lem of improp­er main­te­nance of account­ing and finan­cial records even before the IJM appointments.

So far, the court-appoint­ed man­agers are yet to get accu­rate infor­ma­tion on the cryp­to lender DeFi posi­tions. The DeFi assets account for most of the Hodl­naut cryp­to assets and are on sev­er­al plat­forms. These include Com­pound, Aave, Curve, and Convex.

The lender assets on cen­tral­ized exchanges only account for $25.7 mil­lion of the esti­mat­ed $104 mil­lion it has. This is far low­er than the total lia­bil­i­ties, which stand at $377 million.

Simon Lee Accuses Judicial Managers of Dishonesty

The report comes a week after Hodl­naut co-founder Simon Lee filed an affi­davit against the IJM accus­ing them of dis­hon­esty. Accord­ing to Lee, the IJMs had sacked the embat­tled firm’s for­mer lawyer despite assur­ances that they would be retained. 

Simon Lee said that there is a pos­si­ble case of con­flict of inter­est in the new hire. Wong­Part­ner­ship could be swayed by one of its largest cred­i­tors the Algo­rand Foun­da­tion. Wong­Part­ner­ship has report­ed­ly acknowl­edged that it rep­re­sents Algo­rand Foundation.

With the IJMs not hav­ing access to com­plete infor­ma­tion, they can’t decide whether the Hodl­naut can con­tin­ue or be liq­ui­dat­ed. How­ev­er, liq­ui­da­tion is look­ing more like­ly giv­en that only three employ­ees remain out of 38 that were there before August.

The report also hint­ed at the pos­si­bil­i­ty of crim­i­nal charges against the founder. Main­ly as it emerged that the direc­tors told some employ­ees to with­draw their funds before announc­ing they were halt­ing withdrawals.

Hodl­naut is one of the cor­po­rate vic­tims of the Ter­ra LUNA UST crash. After dis­clos­ing its loss­es in August, the Mon­e­tary Author­i­ty of Sin­ga­pore with­drew the in-prin­ci­ple license that allows the Hodl­naut to offer cryp­to-lend­ing service.

Disclaimer

All the infor­ma­tion con­tained on our web­site is pub­lished in good faith and for gen­er­al infor­ma­tion pur­pos­es only. Any action the read­er takes upon the infor­ma­tion found on our web­site is strict­ly at their own risk.



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