Hodlnaut Faces Liquidation, Poloniex Loses $100M due to Hack, BlackRock Gears for Ethereum ETF
Summary:
Crypto lending platform Hodlnaut is headed for liquidation according to its interim judicial manager. In another development, a hack on the Poloniex exchange led to a loss of over $100 million in digital assets. Asset management giant BlackRock has shown intentions to move beyond Bitcoin, making its first step towards filing for a spot Ether ETF and registering an Ethereum Trust in Delaware, leading to a surge in Ether's price.
Hodlnaut, the cryptocurrency lender, is set for liquidation as revealed by the company's interim judicial manager. A wallet linked to crypto exchange Poloniex has lost over $100 million in digital assets due to what cyber security experts speculate to be a large-scale hack. Concurrently, BlackRock, the asset managing firm, bids for a spot in the Ethereum exchange-traded fund (ETF) following the submission of a 19b-4 filing by Nasdaq to the securities regulator.
Singapore's High Court has demanded the dissolution of Hodlnaut, a digital asset lending company that crumbled during the cryptocurrency winter season. The declaration came from Aaron Loh Cheng Lee, the former interim judicial manager of Hodlnaut, in a letter posted on EY's webpage. He, along with fellow interim judicial manager Ee Meng Yen Angela, were discharged from their posts and named liquidators.
In August 2022, Hodlnaut, headquartered in Singapore, halted any deposits and withdrawals and withdrew its license application before federal regulators. This decision to discontinue operations followed "recent market conditions," alluding to the cryptocurrency winter. The company's creditors consist of about 17,000 users as per the letter dated Nov. 10.
Poloniex, a digital asset exchange, recently fell victim to a security breach causing up to $100 million in cryptocurrency to be syphoned off by culprits. Blockchain security companies speculate this to be a "private key compromise." The monetary assets have reportedly already been moved to four externally-owned accounts (EOAs), some of which have been converted into Ethereum (ETH). While there is no official statement from the exchange on this incident yet, Justin Sun, the exchange's owner as of 2019, mentioned that the affected users would be fully compensated.
Furthermore, Sun put forth a 5% white hat bounty to the Poloniex hacker, giving them seven days to return the funds before involving law enforcement authorities.
The desired entry of BlackRock, into the spot Ethereum ETF, was confirmed through a 19b-4 form submission to the United States Securities and Exchange Commission on Nov. 9. This was done on behalf of the asset management firm, worth $9 trillion, for the proposed ETF named the "iShares Ethereum Trust."
BlackRock revealed its plans to branch out from Bitcoin with more ETF ambitions. Its first step in its bid for an Ether (ETH) spot ETF is the recent registration of an Ethereum trust in the tycoon's residence, Delaware. Ether's price skyrocketed following this news, with it peaking over $2000 for the first time since April.
In June, the asset manager unveiled a Bitcoin (BTC) trust before filing with the U.S. Securities and Exchange Commission for a Bitcoin ETF spot, indicating its budding endeavors in the world of crypto.
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Published At
11/10/2023 7:59:42 PM
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