Troubled cryptocurrency lending company Hodlnaut reportedly working with several potential investors to sell the business and other assets.
Several potential buyers have questioned the purchase of Hodlnaut and their claims against the collapsed crypto exchange FTX, Bloomberg reported on February 6.
Interim judicial manager Hodlnaut has received several proposals to acquire a Singapore-based crypto business after the company sought protection from creditors. According to the affidavit, the report notes that the judicial manager is currently in the process of signing a non-disclosure agreement with potential investors.
The affidavit reported that as of December 9, Hodlnaut Group owed a total of $160.3 million – or 62% of outstanding debt – to companies and entities such as the Algorand Foundation, Samtrade Custodian, SAM Fintech and Jean-Marc Tremeaux.
As previously reported, Hodlnaut’s FTX account holds 514 Bitcoin (BTC), 1,395 Ether (ETH), 280,348 USD Coin (USDC) tokens and 1,001 FTX (FTT) tokens. The company reportedly has more than $18 million in digital assets on centralized exchanges like FTX, Deribit, Binance, OKX and Tokenize.
After becoming the leading crypto credit platform, Hodlnaut was forced to stop operations due to a lack of liquidity triggered by a large bear market in 2022. After freezing withdrawals in August, Hodlnaut obtained creditor protection by the Singapore Court, allowing the company to restructure under court supervision. The court appointed Ee Meng Yen Angela and Aaron Loh Cheng Lee of EY Corporate Advisors as interim judicial managers.
related: Celsius published a list of eligible users to withdraw the majority of their assets
The news comes weeks after Hodlnaut’s creditors rejected a proposed restructuring plan and called for liquidation of the platform’s assets. However, the creditors are reportedly asking for liquidation and distribution of the remaining assets among the creditors in order to maximize the remaining value.
Hodlnaut is one of many companies specializing in crypto lending services, allowing users to deposit cryptocurrency that is loaned to borrowers in return for regular interest payments. The season of cryptocurrency in 2022 has disrupted the operations of crypto lenders, including Celsius Network, BlockFi, Genesis, Vault and others. Some industry executives believe that crypto credit can still survive the bear market, but some conditions still need to be met.