Hodlnaut, a crippled crypto lending platform that had previously announced plans to liquidate its assets together with its FTX claims, has reportedly begun signing disclosure documents with potential buyers.
Hodlnaut liquidators flock in
Hodlnaut, a Singapore-based crypto lending platform, is allegedly planning to sell its assets and liquidate the company—including selling all claims tied up in FTX. The firm reportedly signs disclosure documents to sell the business and assets, including FTX claims. According to Hodlnauts’ interim judicial managers, several bids have been laid out by interested parties after they filed for bankruptcy protection against creditors.
According to court documents cited by Bloomberg, Hodlnaut Group owed more than $160 million to other companies including Algorand Foundation, Samtrade Custodian and SAM Fintech on December 9th 2022.
In August 2022, Hodlnaut filed for bankruptcy. According to Bloomberg, 72% of its digital assets were made up by FTX at the time. The company suspended all withdrawals in August, after which its legal troubles began. The firm laid off most of its workers when it declared bankruptcy earlier this month.
Hodlnaut’s collapse affected Algorand Foundation
Hodlnaut had been angling for a new course of action—creditors tried to avoid the firm’s restructuring process and have its assets liquidated instead.
The cryptocurrency lending platform Hodlnaut declared bankruptcy in September, leaving the Algorand blockchain foundation with $35 million locked up in it.
Investigators began to scrutinize the firm’s operations and found that it was heavily exposed to Terra/Luna, a collapsed company whose bankruptcy wiped out $42 billion from oblivious investors and venture capital firms.A crypto news update revealed that the lender lost more than $190 million in its failed attempt to develop an algorithmic ecosystem with Do Kwon’s help.
