Hodlnaut has buyers interested in platform, FTX claims as creditors look to force liquidation

Kitco Media
By Ernest Hoffman
Published
Updated
Kitco News
The Leading News Source in Precious Metals

Kitco NEWS has a diverse team of journalists reporting on the economy, stock markets, commodities, cryptocurrencies, mining and metals with accuracy and objectivity. Our goal is to help people make informed market decisions through in-depth reporting, daily market roundups, interviews with prominent industry figures, comprehensive coverage (often exclusive) of important industry events and analyses of market-affecting developments.

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - Hodlnaut, the insolvent Singapore-based crypto lender, has received multiple inquiries from potential buyers, according to an affidavit quoted by a Bloomberg report published Monday.

“Various parties who are interested in acquiring” Hodlnaut's platform, along with their claims against the FTX cryptocurrency exchange, have contacted the court-appointed managers overseeing the company’s protection from creditors.

According to the affidavit, the managers are “in the process of signing non-disclosure agreements with the potential investors.” The document shows that Hodlnaut Group owes $160.3 million, or 62% of their outstanding debt, to four creditors: Algorand Foundation, Samtrade Custodian, S.A.M. Fintech and Jean-Marc Tremeaux, as of Dec. 9, 2022.

FTX held approximately 72% of the digital assets Hodlnaut had on centralized exchanges with a market value of $14 million.

On Jan. 19, key creditors including Algorand rejected a proposed restructuring plan in favor of liquidating the company. Algorand wrote in a court filing that this should be done as soon as possible “to maximize the company’s remaining assets available for distribution.”

Hodlnaut suspended withdrawals, swaps and deposits on Aug. 8, and laid off 80% of its staff on Aug. 19 as it fought to stay afloat in the wake of the collapse of TerraUSD, Celsius and Singapore-based Three Arrows Capital. On Aug. 29, a Singapore court approved the firm for creditor protection and placed it under judicial management to prevent a potential forced liquidation.

The potential buyers have not yet been named.

Kitco Media

Ernest Hoffman

Ernest Hoffman is a Crypto and Market Reporter for Kitco News. He has over 15 years of experience as a writer, editor, broadcaster and producer for media, educational and cultural organizations. Ernest began working in market news in 2007, establishing the broadcast division of CEP News in Montreal, Canada, where he developed the fastest web-based audio news service in the world and produced economic news videos in partnership with MSN and the TMX. He has a Bachelor's degree Specialization in Journalism from Concordia University. You can reach Ernest at 1-514-670-1339.

Mdi Earth Logo

Tags:

Share

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.