Several Buyers Indicate Interest In Hodlnaut: Report – CryptoNewsTo

Several Buyers Indicate Interest In Hodlnaut: Report

Several potential buyers have signaled interest in troubled crypto lender Hodlnaut, including its claims in FTX’s bankruptcy, according to a report.

Various parties have contacted the Singapore-based company’s interim judicial managers, who were appointed to oversee its restructuring last summer, Bloomberg reported, citing a password-protected affidavit.

The possible bidders are now in the process of signing non-disclosure agreements. Decrypt has contacted Hodlnaut and its judicial managers at EY Singapore for comment.

Hodlnaut faces challenges

Hodlnaut was one of many companies affected by the collapse of FTX in November last year, although its difficulties date back to at least as early as May, when it lost almost $190 million in the crash of the Terra ecosystem.

The company halted withdrawals in August and enlisted third-party interim managers at the same time as it cut 80% of its staff to save money.

Hodlnaut held $13.2 million worth of cryptocurrency on FTX as of late October last year, including Bitcoin, Ethereum, USDC and FTX’s native FTT tokens.

The latest affidavit also reportedly shows that, as of December 9 2022, Hodlnaut had outstanding debts of $160.3 million to the Algorand Foundation, Samtrade Custodian, SAM Fintech and Jean-Marc Treameaux.

The firm is also facing a probe led by Singapore’s white-collar crime investigation unit into “possible cheating and fraud”, launched in November.

Last month, Hodlnaut’s creditors rejected a proposal to restructure the company, and suggested it was in their best interest to dissolve the firm.

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