The proprietors of the cryptocurrency lender Hodlnaut Pte, who are domiciled in Singapore, recently suggested to the firm’s creditors that they might consider purchasing the company rather than entirely shutting it down. Instead of liquidating the problematic corporation, this might be a preferable course of action.
According to an affidavit that Bloomberg News could see, Simon Lee said that he and Zhu Juntao, the other co-founder of Hodlnaut, had contacted several “potential white knight investors.” According to Lee, the other co-founders of the firm think that the user base of Hodlnaut might be acquired and added to digital asset platforms owned by or affiliated with such investors. He believed this would result in the “maximization” of value for the creditors.
There was no immediate reaction from the firm when an email was received asking for a response to the co-founders’ suggestion. The email was addressed to the company.
What lead to this?
In August, Hodlnaut was granted protection from its creditors, so the firm temporarily halted processing withdrawals. Hodlnaut also does business in Hong Kong. It was one of several Bitcoin lenders worldwide that ran into issues during the bear market that took place for digital assets in 2018. This bear market for digital assets took place in 2018.
In January, significant creditors of Hodlnaut said that the best way to serve their interests was for the firm to halt operations since it would be the most excellent way to help them. Accordingly, Hodlnaut attempted to reduce its exposure to risk inside the disintegrating ecosystem of the Terra digital coin, which the cryptocurrency criminal Do Kwon developed. Despite this, the corporation suffered a loss of around 190 million dollars.
