Feb 6, 2023
Potential Buyers Circle Embattled Singapore Crypto Lender Hodlnaut and its Claims Against FTX
(Bloomberg) -- Potential buyers are inquiring about purchasing the struggling crypto lender Hodlnaut and its claims against bankrupt digital-asset exchange FTX.
“Various parties who are interested in acquiring” Singapore-based Hodlnaut’s crypto platform and FTX claims have contacted the interim judicial managers overseeing the company after it sought protection from creditors, according to an affidavit seen by Bloomberg News.
The judicial managers are in the process of signing non-disclosure agreements with the potential investors, the document shows. The affidavit indicates that as of Dec. 9 Hodlnaut Group owed a combined $160.3 million, or 62% of outstanding debt, to Algorand Foundation, Samtrade Custodian, S.A.M. Fintech and Jean-Marc Tremeaux.
Hodlnaut didn’t immediately reply to a request for comment.
Hodlnaut, which also has operations in Hong Kong, halted withdrawals in August amid last year’s crypto rout — one of many lenders to hit the buffers. FTX accounted for about 72% of the digital assets the platform deployed on centralized exchanges, with an estimated market value of S$18.5 million ($14 million), according to a November filing.
Last month, key Hodlnaut creditors rejected a proposed restructuring plan and said they preferred to liquidate the company.
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