Hodlnaut Set to Sell Business and Its FTX Claims to Interested Buyers: Report
Main page News, Asia, Crypto Market, Cryptocurrency
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Feb. 6, 2023

Troubled Asian crypto lender Hodlnaut is discussing its acquisition with various parties who are interested in the deal, Bloomberg has learned, citing an affidavit.

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The Singapore-based firm didn't specify, which parties are interested in acquisition. However, they're also interested in buying out Holdnaut's claims to FTX, the report says.

As of December, Hodlnaut owed over $160 million to Algorand Foundation, Samtrade Custodian, S.A.M. Fintech and Jean-Marc Tremeaux. According to court filings, Hodlnaut stored over 70% of its assets (~$14 million) on FTX.

In January this year, Hodlnaut's main creditors, including Algorand Foundation, rejected the restructuring plan, saying they want to liquidate the company to maximize "remaining assets available for distribution."

Singapore's Police Probes Hodlnaut for Potential 'Cheating and Fraud'

The plan proposed by Hodlnaut's former top-managers would allow them to continue managing the business. However, the creditors apparently don't want this as Singapore's police is investigating the company for potential fraud.

In November 2022, interim judicial managers found that Hodlnaut had suffered a $190 million loss due to the Terra crash. They noted in a report that Hodlnaut's top management apparently had "downplayed the extent of the group's exposure" to the Terra crash not only during the period leading up to the crash, but also after it.

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