Hodlnaut founders propose selling the firm instead of liquidation

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The founders of troubled crypto lender Hodlnaut are trying to save the business, even as creditors insist on liquidation.

February 28, Hodlnaut interim judicial manager release Hodlnaut co-founder Simon Lee’s sixth affidavit reportedly states that the company’s founders proposed selling the business as a better option for creditors than liquidating the company. It is

According to a Bloomberg report, Lee Said He and Zhu Juntao, another co-founder of Hodlnaut, reached out to a number of “potential white knight investors.”

Lee wrote that Hodlnaut co-founders are confident the company’s user base “can be acquired and onboarded in digital asset platforms owned or affiliated with such investors.” It is reported. He declared that such a transaction would “maximize” creditor value.

The affidavit further reaffirms Hodlnaut’s intention to sell the company, as the company was working with multiple potential investors to sell its businesses and other assets. A number of potential buyers have reportedly inquired about Hodlnaut’s purchase and claims against cryptocurrency exchange FTX, which went bankrupt as of early February.

The news comes shortly after major Hodlnaut creditors, including the Algorand Foundation, rejected a restructuring proposal in January that would allow current directors to oversee the company’s operations during the restructuring phase. Creditors argued that the restructuring was useless and that it was in their best interest to liquidate the company’s remaining assets.

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As of December 2022, Hodlnaut Group owes a total of $160.3 million (62% of outstanding debt) to companies and entities such as Algorand, Samtrade Custodian, SAM Fintech and Jean-Marc Tremeaux .

Hodlnaut, once a leading cryptocurrency lending platform, was forced to suspend its services in August 2022 due to lack of liquidity caused by the 2022 bear market. Sam Bankman-Fried had over 500 Bitcoins (BTC) stacked on his cryptocurrency exchange.

The news came on February 28, when another troubled crypto lender, Voyager, announced that its customers had voted on a restructuring plan with Binance’s US-based business, Binance.US. was brought to In December, Binance.US announced a deal to purchase Voyager’s assets for his $1.02 billion.