Cryptocurrency lender Hodlnaut began talks to sell after losing $190 million
The management of Singapore cryptocurrency platform Hodlnaut offered to sell the business instead of liquidating it
The Singapore-based crypto platform, which lost about $190 million after Terra collapsed, has begun talks with a number of investors
The founders of Singapore-based cryptocurrency lender Hodlnaut, which is going through a restructuring process, have offered to sell the business because they believe it would be better for creditors than liquidating the company, Bloomberg reports.
Hodlnaut had more than 5,000 customers and, in addition to issuing loans, also offered deposits in cryptocurrencies, including bitcoin, Ethereum, USDT, and DAI. Last May, the company suffered $189.7 million in losses from the Terra collapse.
In early August, Hodlnaut halted operations due to "the need to focus on stabilizing liquidity and preserving assets," fired 80 percent of its employees, and filed for external management and investor protection in an attempt to avoid liquidation. At the time, Hodlnaut was about $193 million short of paying off debts.
In a statement obtained by Bloomberg, Hodlnaut founders Simon Li and Zhu Juntao said they had contacted a number of potential "white knights" investors. These are companies that buy up troubled assets, restructure debts, resolve conflicts, rebuild management, and then, in some cases, sell for more money.
According to reporters, key Hodlnaut creditors said in January that their interests were best served by liquidating the company.
In their view, "Hodlnaut's customer base could be bought out by interested parties and placed on crypto platforms owned by or associated with such investors."
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