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Troubled Singapore-based cryptocurrency lender Hodlnaut appears to be headed for a possible liquidation after its creditors rejected a proposed restructuring plan and instead sought liquidation of the lender’s assets.
Hodlnaut started by downplaying its exposure to the Terra LUNA collapse, but after the platform suspended withdrawals citing a lack of liquidity and market volatility, a survey was conducted and the Terra collapse resulted in about Finding it lost $190 million, executives later deleted numerous related documents. on their investments to avoid exposure.
Hodlnaut later sought judicial control to avoid liquidation, eventually reverting the asset-liability ratio back to 1:1 and allowing users to withdraw their funds. placed under a protection program.
The government-backed judicial program did not appear to have helped. In November, an investor filed a complaint, resulting in an investigation of the founders for understating their exposure to certain crypto tokens and misrepresenting the facts.
The proposed restructuring plan would allow the current directors to oversee the lending company’s operations during the restructuring process, sidelining the interim judicial manager. However, at a public hearing on January 12, the request for removal of the interim judicial administrator was rejected.
The company’s creditors rejected the restructuring plan and called for the liquidation of the platform’s assets. They believe that restructuring will not help remove cryptocurrency lenders from their current predicament, and that it is in their best interest for the company to downsize and liquidate its assets.
For example, one of Hodarnat’s creditors, Algorand, sought immediate liquidation and distribution of the remaining assets among its creditors.
