Hodlnaut's major creditors, including Algorand Foundation, in a recent court filing have said they don't want to wait for any buyout deals as no interested party in doing this has showed up so far.
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The group of creditors with claims of over $170 million said it would be in favor of Hodlnaut's being out into liquidation and opposes "any iteration of a potential restructuring."
"There appears to be no indication of a white knight investor to date, and hence no prospect of any fresh capital injection," the creditors said.
Algorand Foundation previously said it has a $35 million USDC exposure to Hodlnaut after the troubled crypto lender suspected withdrawals from its platform. The organization added the stuck funds represent less than 3% of its assets.
In November 2022, interim judicial managers found that Hodlnaut suffered a $190 million loss due to the Terra crash. The judicial managers noted 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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