Troubled Singaporean crypto lender Hodlnaut seeking buyers
- The troubled Singaporean cryptocurrency lending firm Hodlnaut is negotiating the sale of its business and other assets with several potential investors.
- Hodlnaut’s FTX accounts held 514 Bitcoin (BTC), 1,395 Ether (ETH), 280,348 USD Coin (USDC) and 1,001 FTX.
As per a recent Bloomberg report, the troubled Singaporean cryptocurrency lending firm Hodlnaut is reportedly negotiating the sale of its business and other assets with several potential investors.
A number of interested parties 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 enterprise. The judicial managers are currently negotiating non-disclosure agreements (NDAs) with potential investors.
Hodlnaut Group owed a total of $160.3 million, i.e. 62% of outstanding debt, to companies and entities such as Algorand Foundation, Samtrade Custodian, S.A.M. Fintech, and Jean-Marc Tremeaux, as of 9 December 2022.
Hodlnaut allegedly had over $18 million in digital assets on centralized exchanges such as FTX, Deribit, Binance, OKX, and Tokenize. Its FTX accounts held 514 Bitcoin (BTC), 1,395 Ether (ETH), 280,348 USD Coin (USDC), and 1,001 FTX tokens.
Hodlnaut one of the several victims
Hodlnaut, once a prominent global 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.
Furthermore, the creditors are said to have demanded immediate liquidation and distribution of remaining assets among creditors in order to maximize the remaining value.
The 2022 cryptocurrency winter has also hampered the operations of a number of other crypto lenders, including Celsius Network, BlockFi, Genesis, Vauld, and others.
Hodlnaut is one of the many fintech companies that offer cryptocurrency lending services, allowing users to deposit cryptocurrency that is then lent out to borrowers in exchange for regular interest payments.