BlocksInform
Troubled cryptocurrency lending firm Hodlnaut is reportedly working with several potential investors to sell its business and other assets.
A number of potential buyers have inquired about purchasing Hodlnaut and its claims against the collapsed crypto exchange FTX, Bloomberg reported on Feb. 6.
Hodlnaut’s interim judicial managers have received multiple proposals to acquire its Singapore-based crypto business after the company sought protection from creditors. Quoting from an affidavit, the report notes that court managers are now in the process of signing confidentiality agreements with potential investors.
The sworn statement would have been effective December 9, 2022, In total, the Hodlnaut Group owed $160.3 million, or 62% of the outstanding debt, to companies and entities like the Algorand Foundation, samtrade custodian, fintechs.a. and manufactured goods.
As previously reported, Hodlnaut’s FTX accounts held 514 Bitcoin (), 1,395 Ether (), 280,348 USD Coin () tokens and 1,001 FTX () tokens. It would have had over $18 million in digital assets on centralized exchanges like ftx, deribit, binance, okx and tokenize.
Once an important crypto lending platform, Hodlnaut was forced out of business because of a lack of liquidity caused by a massive bear market in 2022. After freezing withdrawals in August, Hodlnaut obtained creditor protection from a Singapore court, allowing the firm to restructure under court supervision. The court has appointed ee meng yen angela and aaron loh cheng lee de ey councillors of enterprise as interim insolvency administrators.
Related: Celsius publishes list of users eligible to withdraw majority of assets
The news comes weeks after Hodlnaut’s creditors rejected the proposed restructuring plan and sought liquidation of the platform’s assets. Instead, creditors would have demanded immediate liquidation and distribution of the remaining assets between creditors in order to maximize the remaining value.
Hodlnaut is one of many companies specializing in crypto lending services, allowing users to deposit cryptocurrency lent out to borrowers in return for regular interest payments. The 2022 cryptocurrency winter has disrupted crypto lenders' operations, including the Celsius, blockfi, genesis, vauld and other networks. A number of industry executives believe that crypto lending can still survive the bear market, but some conditions still need to be met.
