The struggling cryptocurrency lending company Hodlnaut would be working with various potential investors to sell his business and other assets.
Several potential buyers have been interested in the purchase of Hodlnaut and its claims against the bankrupt exchange; FTX, as reported by Bloomberg on February 6.
Hodlnaut’s interim receivers have received multiple proposals to acquire the Singapore-based cryptocurrency firm after the firm filed for protection from creditors. Citing an affidavit, the story notes that the receivers are now in the process of signing confidentiality agreements with potential investors.
The affidavit allegedly indicated that, as of December 9, 2022, Hodlnaut Group owed a total of USD 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 we told you before, Hodlnaut’s FTX accounts held 514 Bitcoin (BTC), 1,395 Ether (ETH)), 280,348 USD Coin (USDC) tokens, and 1,001 FTX (FTT) tokens. According to various news reports, the company had digital assets worth more than $18 million on centralized exchanges such as FTX, Deribit, Binance, OKX, and Tokenize.
Once a major cryptocurrency lending platform, Hodlnaut was forced to halt operations due to illiquidity caused by a massive bear market in 2022. After freezing withdrawals in August, Hodlnaut obtained creditor protection from a Singapore 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 court managers.
The news comes weeks after Hodlnaut’s creditors rejected the proposed restructuring plan and called for the liquidation of the platform’s assets. Instead, the creditors 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 companies specializing in cryptocurrency lending services, which allow users to deposit cryptocurrencies lent to borrowers in exchange for regular interest payments. The 2022 cryptocurrency bear market has disrupted the operations of cryptocurrency lenders such as Celsius Network, BlockFi, Genesis, Vauld, and others. Several industry executives believe that crypto loans can still survive the bear market, but some conditions still need to be met.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.