Hodlnaut said on Tuesday it has been placed under interim judicial management by the Singapore High Court, after the troubled cryptocurrency lender suspended withdrawals earlier this month.
Judicial management allows a financially distressed company to be restructured under court supervision.
The Singapore-based crypto firm said the court had appointed Ee Meng Yen Angela and Aaron Loh Cheng Lee of EY Corporate Advisors as interim judicial managers.
"We will not be able to provide further information at this juncture, but hope to provide further updates once our IJMs (Interim Judicial Managers) determine it necessary to do so," Hodlnaut said.
Earlier this month, Hodlnaut suspended withdrawals, swaps and deposits to focus on stabilizing its liquidity and preserving the company's assets.
Hodlnaut is the latest in a string of crypto players globally to run into difficulties following a sharp sell off in markets that started in May with the collapse of two paired tokens, Luna and TerraUSD.
The company also said it had laid off about 40 employees, while also disclosing an investigation by the Singapore police.
(Reporting by Rishabh Jaiswal in Bengaluru; Editing by Krishna Chandra Eluri)