Hodlnaut’s Founder Want To Sell Business To Maximize Value For Creditors
- Simon Lee, the founder of Hodlnaut, has proposed selling the business and believes that for creditors, selling the business is better than liquidating the struggling company.
- Simon approached several potential investors.
- Creditors of crypto lending platform Hodlnaut have rejected the company’s reorganization plan and liquidation hopes.
According to Bloomberg, Simon Lee, the founder of Hodlnaut, a Singapore-based cryptocurrency lender, proposed to sell the business and believed that for creditors, selling the business is better than liquidating this troubled company.
Simon Lee said in a court affidavit that he and Zhu Juntao, the company’s other co-founder, had approached some potential investors.
According to Lee, the co-founders think that the “Hodlnaut user base can be acquired and on-boarded on digital-asset platforms owned or affiliated to such investors.” For creditors, he said, this would “maximize” value.
It is reported that Hodlnaut stopped withdrawals in August last year and was protected by creditors. It is one of many cryptocurrency lenders around the world that have run into trouble during last year’s digital asset rout. Shortly after stopping customer withdrawals in August 2022, Hodlnaut applied for creditor protection.
Hodlnaut had minimized its exposure to the defunct Terra ecosystem of digital tokens run by Do Kwon, but in actuality, it lost close to $190 million.
Due to dire financial conditions, the company reduced the majority of its personnel and sought to be put under judicial control, acknowledging that it had laid off 40 workers.
Interim Judicial Manager accused Zhu Juntao and Simon Lee, and several unnamed employees of being uncooperative in their investigation of the company in late October.
In November, Singapore authorities opened an investigation into Hodlnaut. The investigation is the result of multiple allegations of false claims about the company’s exposure to a particular digital token.
According to news on January 13, the creditors of the encrypted lending platform Hodlnaut rejected the reorganization plan and hoped to liquidate it. Potential buyers are said to be interested in purchasing the company.
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