Cryptocurrency lending company in trouble Hodlnaut He is reportedly working with a number of potential investors to sell his business and other assets.
Several potential buyers have inquired about the purchase of Hodlnaut and its claims against the crashed crypto exchange FTX, Bloomberg reported on February 6.
Hodlnaut's interim court managers have received multiple proposals to acquire their Singapore-based cryptocurrency business after the firm sought protection from creditors. Citing an affidavit, the report notes that the receivers are now in the process of signing confidentiality agreements with potential investors.
The affidavit reportedly indicated that, as of December 9, 2022, Hodlnaut Group owed a total of $160.3 million, or 62% of the outstanding debt, to companies and entities such as the Algorand Foundation, Samtrade Custodian , SAM Fintech and Jean-Marc Tremeaux.
As previously reported, Hodlnaut FTX accounts held 514 bitcoins (BTC), 1,395 ether (ETH), coin of 280 348 USD (USDC) tokens and 1,001 FTX (FTT) records. The company reportedly held over $18 million worth of digital assets on centralized exchanges such as FTX, Deribit, Binance, OKX, and Tokenize.
Hodlnaut, once a major crypto lending platform, was forced to halt operations due to illiquidity brought on by a massive bear market in 2022. After withdrawal freeze in augusthodlnaut got protection from creditors from a Singaporean court, allowing the company to restructure under court supervision. The court appointed Ee Meng Yen Angela and Aaron Loh Cheng Lee of EY Corporate Advisors as interim receivers.
Related: Celsius publishes list of users eligible to withdraw most assets
The news comes weeks after Hodlnaut's creditors rejected the proposed restructuring plan and sought liquidation of the platform's assets. Instead, the creditors allegedly called for immediate liquidation and the distribution of the remaining assets among the creditors in order to maximize the remaining value.
Hodlnaut is one of many specialized companies in crypto lending services, which allows users to deposit cryptocurrencies lent to borrowers in exchange for regular interest payments. The cryptocurrency winter of 2022 has disrupted the operations of cryptocurrency lenders, including the Celsius Network, BlockFi, Genesis, Vauld, and others. Several industry executives believe that crypto loans can still survive the bear market, but some conditions must still be met.
Post navigation
