Troubled cryptocurrency lending agency Hodlnaut is reportedly working with a number of potential buyers to promote its enterprise and different belongings.
A variety of potential patrons 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 technique of signing non-disclosure agreements with the potential buyers.
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 firms 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 compelled to halt operations as a consequence of a scarcity of liquidity triggered by an enormous bear market in 2022. After freezing withdrawals in August, Hodlnaut obtained creditor protection from a Singapore courtroom, permitting the agency to restructure below courtroom supervision. The courtroom 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 an alternative, the collectors reportedly known as for fast liquidation and distribution of remaining belongings amongst collectors so as to maximize the remaining worth.
Hodlnaut is one in every of many firms 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.