- Singapore-based crypto company Hodlnaut is being inquired about by potential buyers.
- Hodlnaut creditors have rejected a restructuring proposal to continue the business.
- Additionally, the creditors believe liquidation will provide maximum assets for distribution.
A Bloomberg report, noting a January 11 filing, published that potential purchasers are inquiring about the crypto lender Hodlnaut and its claims against the insolvent digital asset exchange FTX.
According to an affidavit acquired by Bloomberg News, “various parties who are interested in acquiring” Singapore-based Hodlnaut’s crypto platform and FTX claims have spoken with the temporary court managers in charge of the organization after it requested protection from creditors.
The document suggests that the court management is currently signing non-disclosure agreements with possible investors. Based on the affidavit, as of December 9 Hodlnaut Group owed the Algorand Foundation, Samtrade Custodian, S.A.M. Fintech, and Jean-Marc Tremeaux a total of $160.3 million, i.e. 62% of its outstanding debt.
Several crypto lenders struggled to survive last year, while many faced bankruptcy. Hodlnaut stopped accepting withdrawals in August 2022 as a result of the crypto crash. According to a November filing, FTX made up roughly 72% of the platform’s digital assets on centralized exchanges, with an estimated market value of S$18.5 million ($14 million).
Moreover, a proposed restructuring plan was rejected, last month, by significant Hodlnaut creditors who stated they preferred the company to be liquidated. Hodlnaut directors who were at the forefront during its collapse may have continued leading the business under the restructuring plan.
The creditors including Algorand Foundation, added:
Liquidation would maximise the company’s remaining assets available for distribution.
As per the judicial managers, the lender’s issues were prompted by the Terra ecosystem collapse last year, to which Hodlnaut directors understated their exposure. According to the IJM, the company had actually converted a sizable amount of cryptocurrency to terraUSD (UST), which resulted in losses of roughly $190 million.
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