Hodlnaut Seek Buyers For Its FTX Stake
Hodlnaut, a troubled cryptocurrency lending firm, is reportedly in talks with several potential investors about selling its business and other assets.
According to Bloomberg, a number of potential buyers have inquired about purchasing Hodlnaut and its claims against the defunct cryptocurrency exchange FTX.
After seeking creditor protection, Hodlnaut’s interim judicial managers received multiple bids to acquire its Singapore-based crypto business. According to an affidavit, the judicial managers are now in the process of signing non-disclosure agreements with potential investors.
According to the affidavit, Hodlnaut Group owed a total of $160.3 million — or 62% of outstanding debt — to companies and entities such as Algorand Foundation, Samtrade Custodian, S.A.M. Fintech, and Jean-Marc Tremeaux as of Dec. 9, 2022.
According to reports, the company had more than $18 million in digital assets on centralised exchanges such as FTX, Deribit, Binance, OKX, and Tokenize.
Hodlnaut, once a major crypto lending platform, was forced to cease operations due to a lack of liquidity caused by a massive bear market in 2022. Hodlnaut obtained creditor protection from a Singapore court after freezing withdrawals in August, allowing the firm to restructure under court supervision. Ee Meng Yen Angela and Aaron Loh Cheng Lee of EY Corporate Advisors were appointed as interim judicial managers by the court.
The announcement comes just weeks after Hodlnaut’s creditors rejected the proposed restructuring plan and demanded the platform’s assets be liquidated.
(With inputs from Shikha Singh)
You need to login in order to Like
