Hodlnaut founders propose selling the firm instead of liquidation

The founders of the troubled cryptocurrency lender Hodlnaut are trying to prevention the concern contempt creditors insisting connected its liquidation.

On Feb. 28, Hodlnaut’s interim judicial managers released the sixth affidavit of Hodlnaut co-founder Simon Lee reportedly stating the company’s founders projected selling the concern arsenic a amended enactment for creditors than liquidating the firm.

According to a study by Bloomberg, Lee said that helium and Hodlnaut’s different co-founder Zhu Juntao person reached retired to a fig of “potential achromatic knight investors.”

Lee reportedly wrote that Hodlnaut co-founders are assured the company’s idiosyncratic basal “can beryllium acquired and on-boarded connected digital-asset platforms owned oregon affiliated to specified investors.” He declared that specified a concern transaction would “maximize” worth for creditors.

The affidavit further reaffirms Hodlnaut’s willingness to to merchantability the steadfast arsenic the institution was working with respective imaginable investors to merchantability its concern and different assets. A fig of imaginable buyers reportedly inquired astir purchasing Hodlnaut and its claims against the collapsed crypto speech FTX arsenic of aboriginal February.

The quality comes soon aft cardinal Hodlnaut creditors, including Algorand Foundation, successful January rejected a restructuring plan connection allowing the existent directors to oversee the firm’s operations during the restructuring phase. The creditors argued that the restructuring would bash nary assistance and it was successful their champion involvement to liquidate the firm’s remaining assets.

Related: DCG losses apical $1B connected the backmost of 3AC illness successful 2022

As of December 2022, Hodlnaut Group owed a full of $160.3 cardinal — oregon 62% of outstanding indebtedness — to companies and entities similar Algorand, Samtrade Custodian, S.A.M. Fintech and Jean-Marc Tremeaux.

Once a large crypto lending platform, Hodlnaut was forced to suspend services successful August 2022 owed to a deficiency of liquidity triggered by the carnivore marketplace successful 2022. Hodlnaut’s operations were further breached by the firm’s important vulnerability to the collapsed FTX exchange, with the steadfast having much than 500 Bitcoin (BTC) stuck connected Sam Bankman-Fried’s crypto exchange.

The quality comes amid different troubled crypto lender, Voyager, announcing connected Feb. 28 that customers voted for a restructuring plan with Binance’s United States-based business, Binance.US. In December, Binance.US disclosed an agreement to bargain Voyager’s assets for $1.02 billion.