Several potential buyers have approached the interim judicial managers of Singapore-based cryptocurrency lending firm Hodlnaut to express interest in acquiring the troubled firm. According to a recent report by Bloomberg, the interested parties have reached out to the judicial managers after the company applied for protection from creditors. The judicial managers are now in the process of signing non-disclosure agreements with the potential buyers who have made inquiries about acquiring Hodlnaut. As of December 9th, the Hodlnaut Group owed $160.3 million, which accounts for over 60% of its outstanding debt, to major companies in the crypto and fintech industries, including Algorand Foundation, Samtrade Custodian, S.A.M. Fintech, and Jean-Marc Tremeaux.
In August 2022, Hodlnaut suspended customer withdrawals and later applied for judicial management in order to receive creditor protection. This move came after the company’s financial health was impacted by the collapse of the Terra ecosystem and the overall crypto market downturn. Blockchain researcher FatManTerra revealed that Hodlnaut lost as much as $190 million during the Terra ecosystem implosion. The company is also under investigation by the police in Singapore for alleged fraud and cheating offenses.
Hodlnaut was founded in 2019 by Juntao Zhu and Simon Lee and was once one of the largest crypto lenders, with over $100 million in customer funds and over 1,000 users in February 2022, compared to just $1 million the previous year. However, a number of major crypto lenders, including Celsius, BlockFi, and the crypto lending unit of Genesis, have filed for bankruptcy in light of the recent market downturn. Among the crypto lending firms that haven’t gone out of business, Nexo recently agreed to pay a total of $45 million to settle charges that it violated investor-protection laws.
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