Hodlnaut works with potential buyers to sell firm and FTX claims: Report


Troubled cryptocurrency lending agency Hodlnaut is reportedly working with a number of potential traders to promote its enterprise and different belongings.

A lot of potential consumers have inquired about buying Hodlnaut and its claims towards the collapsed crypto trade FTX, Bloomberg reported on Feb. 6.

Hodlnaut’s interim judicial managers have obtained a number of proposals to accumulate its Singapore-based crypto enterprise after the corporate sought protection from creditors. Citing an affidavit, the report notes that the judicial managers at the moment are within the means of signing non-disclosure agreements with the potential traders.

The affidavit reportedly indicated that as of Dec. 9, 2022, Hodlnaut Group owed a complete of $160.3 million — or 62% of excellent debt — to corporations and entities like Algorand Basis, Samtrade Custodian, S.A.M. Fintech and Jean-Marc Tremeaux.

As beforehand reported, Hodlnaut’s FTX accounts held 514 Bitcoin (BTC), 1,395 Ether (ETH), 280,348 USD Coin (USDC) tokens and 1,001 FTX (FTT) tokens. The corporate reportedly had greater than $18 million value of digital belongings on centralized exchanges like FTX, Deribit, Binance, OKX and Tokenize.

As soon as a serious crypto lending platform, Hodlnaut was pressured to halt operations as a result of an absence of liquidity triggered by a large bear market in 2022. After freezing withdrawals in August, Hodlnaut obtained creditor protection from a Singapore court docket, permitting the agency to restructure beneath court docket supervision. The court docket appointed Ee Meng Yen Angela and Aaron Loh Cheng Lee of EY Company Advisors as interim judicial managers.

Associated: Celsius publishes list of users eligible to withdraw majority of assets

The information comes weeks after Hodlnaut’s collectors rejected the proposed restructuring plan and sought liquidation of the platform’s belongings. As a substitute, the collectors reportedly referred to as for quick liquidation and distribution of remaining belongings amongst collectors with a purpose to maximize the remaining worth.

Hodlnaut is one in every of many corporations specializing in crypto lending services, allowing users to deposit cryptocurrency lent out to borrowers in return for regular interest payments. The cryptocurrency winter of 2022 has disrupted the operations of crypto lenders, including Celsius Network, BlockFi, Genesis, Vauld and others. A number of industry executives believe that crypto lending can still survive the bear market, however some conditions still need to be met.