Hodlnaut is on Sale! Buyers Want Clarification on FTX Connections
Troubled cryptocurrency lending firm Hodlnaut is reportedly in talks with multiple potential investors to divest it's business and other assets.
The company is hoping to secure a lucrative deal that will help them to move forward and continue to provide their services to the crypto community.
The court-appointed judicial managers of Hodlnaut and the potential
buyers are reportedly signing non-disclosure agreements.
According to reports, troubled cryptocurrency lending company Hodlnaut is discussing the sale of its company and other assets with a number of prospective buyers.
Bloomberg reported on February 6 that a number of potential buyers have expressed interest in purchasing Hodlnaut and its claims against the defunct cryptocurrency exchange FTX.
Several offers to buy Hodlnaut's Singapore-based cryptocurrency business have been made to the company's temporary judicial managers since it filed for bankruptcy. The report mentions an affidavit to support its claim that the judicial managers are currently working with possible investors to sign non-disclosure agreements.
According to the affidavit, as of December 9, Hodlnaut Group owed a total of $160.3 million, or 62% of its outstanding debt, to organizations and businesses such as the Algorand Foundation, Samtrade Custodian, S.A.M. Fintech, and Jean-Marc Tremeaux.
Hodlnaut possessed 1,001 FTX (FTT) tokens and 514 Bitcoin tokens in his FTX accounts, as was previously mentioned. On controlled exchanges including FTX, Deribit, Binance, OKX, and Tokenize, the corporation purportedly held digital assets valued at more than $18 million.
Hodlnaut, once a significant platform for lending cryptocurrency, had to stop operations because of a shortage of liquidity brought on by the severe bear market of 2022. After the Singapore Court granted Hodlnaut creditor protection in August after halting withdrawals, the company was able to restructure under the watchful eye of the court. EY Corporate Advisors' Ee Meng Yen Angela and Aaron Loh Cheng Lee were chosen by the court to serve as interim judicial managers.
Hodlnaut's creditors demanded the platform's assets be liquidated and rejected the proposed restructuring plan, prompting the announcement. Creditors reportedly demanded a quick liquidation and distribution of the remaining assets among creditors in order to maximize the value of the remaining assets.
Hodlnaut is one of many companies that provide cryptocurrency lending services, allowing users to deposit cryptocurrency that is lent to borrowers in exchange for consistent interest payments. The 2022 cryptocurrency winter has hampered the operations of cryptocurrency lenders such as Celsius Network, BlockFi, Genesis, Vauld, and others. Several business leaders believe that crypto loans can still survive the bear market, but certain conditions must be met.
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