Hodlnaut Founders Explore Selling Instead of Opting for Liquidation

Vignesh Karunanidhi
Hodlnaut Founders Explore Selling Instead of Opting for Liquidation
Source: CoinCentral

In August, the Singapore-based start-up Hodlnaut suspended deposits and withdrawals due to market conditions. Following that, the company sought creditor protection, which was granted a few days later by the Singapore High Court.

Following that, it was revealed that the cryptocurrency lender revealed that the collapse of Terra cost the lender over $190 million. Now, according to the latest affidavit viewed by Bloomberg, the founders of Hodlnaut are proposing the sale of the business rather than liquidation.

Also read: Ripple CLO Says Gensler Must Refrain From Voting on Any Enforcement Case

Source: Medium

Hodlnaut founders believe selling is a viable option

According to the affidavit, Saimon Lee and co-founder Zhu Juntao have contacted multiple potential investors for the acquisition of the troubled cryptocurrency lender. Lee also reportedly mentioned that the “Hodlnaut user base can be acquired and on-boarded on digital-asset platforms owned by or affiliated with such investors.” He also mentioned that it could provide maximum value for the creditors.

The year 2022 was a disastrous year for many cryptocurrency firms, including 3AC and Hodlnaut. Both had to halt withdrawals due to volatile market conditions and the collapse of the Terra ecosystem.

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The Singapore authorities also launched an investigation into the cryptocurrency lender for possible fraud in November 2022. The trouble was further exacerbated when the FTX exchange collapsed in 2022.