The founders of the beleaguered crypto lending protocol Hodlnaut are considering selling the business rather than putting it into liquidation.
Simon Lee and Zhu Juntao, the co-founders of Singapore-based protocol, are looking for “white knight investors” to buy the business. The co-founders believe that selling the business is more beneficial to creditors than liquidation.
Will Selling Hodlnaut Maximize Value for Creditors?
Lee says, “Hodlnaut user base can be acquired and on-boarded on digital-asset platforms owned or affiliated to such investors.” He believes that this can “maximize” value for creditors.
The community finds the decision “unfortunate” but “necessary” for the lenders.
In January, Hodlnaut creditors objected to a restructuring proposal. Instead, the group of creditors believed that shuttering the firm and liquidating the assets served their interests best.
The Singapore-based lending protocol suspended operations on the platform last August. The suspension was due to the market conditions and the collapse of Celsius. The firm also had a $190 million exposure to the Terra ecosystem which collapsed last May.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.