- Troubled Singaporean cryptocurrency lender Hodlnaut is negotiating the sale of its business and other assets with several potential investors.
- Hodlnaut FTX accounts hold 514 Bitcoin (BTC), 1,395 Ether (ETH), 280,348 USD Coin (USDC), and 1,001 FTX.
Troubled Singaporean cryptocurrency lending firm Hodlnaut is reportedly negotiating the sale of its business and other assets with several potential investors, according to a recent report by Bloomberg.
A number of interested parties have inquired about Hodlnaut’s purchase and its claims against defunct cryptocurrency exchange FTX.
After seeking creditor protection, Hodlnaut’s interim legal heads received several bids to acquire a Singapore-based crypto firm. The legal executives are currently negotiating non-disclosure agreements (NDAs) with potential investors.
The Hodlnaut Group owes a total of US$160.3 million, 62% of debt owed to companies and entities such as Algorand Foundation, Samtrade Custodian, SAM Fintech and Jean-Marc Tremeaux, on December 9, 2022.
Hodlnaut allegedly owns more than $18 million in digital assets on centralized exchanges such as FTX, Deribit, Binance, OKX, and Tokenize. FTX accounts hold 514 Bitcoin (BTC), 1,395 Ether (ETH), 280,348 USD Coin (USDC), and 1,001 FTX Tokens.
Hodlnaut is one of the many victims
Hodlnaut, once a prominent global cryptocurrency lending platform, has been forced to cease operations due to a liquidity shortage caused by a massive bear market in 2022.
Hodlnaut was granted creditor protection by a Singapore court after it froze withdrawals in August, allowing the company to restructure under court supervision. The court appointed E Ming Yin Angela and Aaron Luo Cheng Li of EY Corporate Advisors as interim legal directors.
The announcement comes just weeks after Hodlnaut’s creditors rejected a proposed restructuring plan and demanded that the platform’s assets be liquidated.
Further, the creditors must have demanded immediate liquidation and distribution of the remaining assets among the creditors in order to maximize the residual value.
The winter of 2022 has also hampered the operations of a number of other crypto lenders, including Celsius Network, BlockFi, Genesis, Vauld, and others.
Hodlnaut is one of several financial technology companies that offer cryptocurrency lending services, allowing users to deposit cryptocurrencies which are then lent to borrowers in exchange for regular interest payments.