Hodlnaut Considers Sale Over Liquidation

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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.

Source: Twitter

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.

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Disclaimer

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.





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