Ailing Crypto Lender Hodlnaut Seeks To Sell Out


It has been close to a year since Singapore-based crypto lender Hodlnaut filed for judicial management to give it more time to recover from a series of financial woes. Earlier the troubled crypto lender had applied for judicial management.

Crypto lender Hodlnaut allows users to deposit cryptocurrencies like Ethereum and Bitcoin and earn interest. It is one among the many such lenders who were struck down during the ongoing slide in the crypto market.

But Hodlnaut has been unable to shake off its troubles and now prospective buyers are circling the embattled form and the claims against FTX, the bankrupt asset exchange.

Various parties have evinced interest in acquiring the crypto firm and the FTX claims. They have communicated with the provisional judicial managers who have been appointed to oversee the company. This comes after Hodlnaut sought protection against multiple creditors.

The managers are going through non-disclosure pacts with prospective investors. The Hodlnaut Group owes over $160 M, which is around 62% of its combined outstanding debt. Debtors include Algorand Foundation, S.A.M. Fintech, Jean-Marc Tremeaaux, and Samtrade Custodian.

Hodlnaut Restructuring Plan Rejected By Creditors Who Opted For Liquidation

Hodlnaut has been operating out of Hong Kong but has halted withdrawals since August 2022 after the crypto rout. It was once a major lending platform on the cryptocurrency market. It halted operations after the massive bear market in 2022 decimated the industry to a large extent.

FTX last year accounted for around 72% of the total digital assets which has an approximate value of around $14 M according to a filing made in November 2022.

Last month the lender’s creditors overruled a restructuring plan that the management had proposed. They indicated that they would opt to move toward the liquidation of the company. They move for immediate liquidation and also the distribution of the assets to creditors.

Many industry experts believe that despite the setback suffered by the lender, the crypto lending business can move out of the bear market, though it would need to adapt to certain changes.