The development of the Recovery and Restructuring Plan was prompted by the restrictive measures taken in order to protect client assets. On the 14th of November 2022, the platform voluntarily entered into an emergency shutdown process as a portion of client assets (approximately 7 million USD) became inaccessible to the platform.

Five parallel activities took place between the 14th of November and the 23rd of December 2022:

  • Providing payouts with loss deduction through the Early Payout programs
  • Preparing legal procedures and police reports on the damage incident
  • Small balances (dust) management
  • Preparing an optional proposal for the migration to the reboot platform
  • Preparing the ILK Token Ecosystem’s Recovery Plan

The preparatory processes resulted in the following tasks and roadmap:

  • January of 2023: the asset isolation process is being completed, along with the assets’ separation process and platform reboot. This will involve a public offer to our clients, which requires an acceptance confirmation issued by Inlock Services UAB. Clients can decide individually whether or not they wish to benefit from the offer. Once accepted, both the client data and the assets (including any running loans) will be migrated to the reboot platform. The proposal has been tailored to benefit particularly those clients who are affected by the damage more significantly in respect of the assets under their management. The offer is optional and subject to additional conditions. The primary purpose of the reboot platform is to isolate the damage suffered by Inlock, thereby minimizing the damage.
  • We will launch the application for the reboot platform in mid-January 2023, which will be open until the end of March 2023.
  • In the second half of January 2023, we will announce a new Early Payout program with loss write-off for clients who do not wish to wait until the implementation of the Recovery and Restructuring Plan that will be released by then.
  • The re-launch of the ILK token ecosystem will be developed and prepared by the end of January 2023, with the first step being the re-launch of the Inlock platform’s tokenmarket function on the ILK-USDC pair in January.
  • The reboot platform will be launched and the migration will start by mid-February 2023 at the latest.
  • In the second half of February 2023, all existing customer loans that have not been closed or migrated to the reboot platform will be compulsorily liquidated.
  • By mid-April 2023, the Inlock platform will achieve a state where all the assets under management are at our disposal allowing us to start releasing assets on a scheduled basis. The scheduled release allows Inlock clients to get their assets back in equal proportions. The scheduled release could potentially be accelerated if the pending lawsuit is partially or fully successful in compensating the platform. The scheduled release is intended to be considered in terms of the assets managed by the platform. (Including all income from platform services, interest income, etc. earned up to that point.)

More details regarding the further steps of Recovery and Restructuring Plan.

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