Hodlnaut is attracting Potential buyers

Hodlnaut is attracting Potential buyers

Altcoin news, News

The troubled cryptocurrency loan firm Hodlnaut and its claims against the digital asset exchange FTX, which has since gone out of business, have garnered the attention of prospective purchasers.

Following the business’s request for protection from its creditors, an article published by Bloomberg on Monday said that “several parties that are interested in purchasing” the crypto platform located in Singapore had reached out to the temporary judicial managers who are supervising the company.

According to the article, which referenced an affidavit, the judicial managers are in the midst of negotiating non-disclosure agreements with the interested parties who have enquired about acquiring Hodlnaut. This information will not be disclosed to the public.

As of the 9th of December, Hodlnaut Group owed a combined $160.3 million, which accounts for more than 60% of the company’s outstanding debt, to some of the most prominent crypto and Fintech companies in the industry, including Algorand Foundation, Samtrade Custodian, S.A.M. Fintech, and Jean-Marc Tremeaux.

At the beginning of the month of August, Hodlnaut stopped the withdrawals of its customers. In a recent update, the firm said that it is investigating “the possibility of enabling consumers to withdraw their original payment, with interest accumulated in full, at a reduced price, and delete their account with Hodlnaut.”


However, by the end of that month, the cryptocurrency lender had submitted an application for judicial administration in order to be put under some kind of creditor protection. The firm said at the time that the decision came after its financial health was affected following the collapse of the Terra ecosystem and the general breakdown of the cryptocurrency market.

A blockchain researcher by the name of FatManTerra disclosed in a series of tweets that Hodlnaut may have suffered losses of up to $190 million as a result of the collapse of the Terra ecosystem. Up until recently, the corporation “continued to convince clients they had zero Anchor vulnerability,” as the pseudonymous crypto researcher pointed out in his observation.

It was discovered in November of the previous year that Hodlnaut is now being investigated by the authorities in Singapore for suspected crimes including fraud and cheating. According to a statement released by the police at the time, Hodlnaut and its directors are under investigation for allegedly making “false claims pertaining to the company’s exposure to a specific digital token.”

Hodlnaut was one of the biggest crypto lending platforms at one point, boasting more than $100 million in client money spread over over 1,000 customers in February 2022. The company was established in 2019 by Juntao Zhu and Simon Lee. The sum has increased by one million dollars from the previous year.

As a result of the recent decline in market value, a number of other significant cryptocurrency lending companies, such as Celsius and BlockFi, and most recently the cryptocurrency lending division of Genesis, have declared bankruptcy. Nexo, which is one of the crypto lending companies that hasn’t gone out of business, recently reached an agreement to pay a total of $45 million to settle charges that it violated laws designed to protect investors. The allegations against Nexo allege that the company violated these laws while lending customers cryptocurrency.

Compiled by Coinbold

blockchain, crypto, FTX, Genesis, LUNA, Terra, UST