Hodlnaut is a Singapore-based cryptocurrency lender. In August 2022, the cryptocurrency business started experiencing financial difficulties. It had to suspend withdrawals on its platform, citing a lack of liquidity in the face of market volatility. It wasn’t until some time later that it was discovered that she was more exposed than she thought to the Earth’s ecosystem. Hodlnaut had lost about $190 million and had to admit defeat. The cryptocurrency lender then decided to start a restructuring procedure, but things didn’t go as planned.
Creditors of cryptocurrency lender Hodlnaut ask for liquidation!
Hodlnaut has come up with a plan to renovate after the colossal loss suffered when the Earth collapsed. But the crypto lender’s major creditors, including the Algorand Foundation, are rejecting the plan, preferring liquidation. Bloomberg’s Asian media branch disclosed this information in a chirp this January 13, 2023”.Major creditors of troubled Singaporean crypto lender Hodlnaut have rejected a proposed restructuring plan and are looking to liquidate the company, according to a filing seen by Bloomberg News.“, reads the publication.
The rejected plan was to allow the company’s current directors to control its business during the restructuring. But the creditors explained it the restructuring plans are useless. They argued that they would benefit greatly from liquidating the company’s remaining assets. For the Algorand Foundation, the liquidation of cryptocurrency lender Hodlnaut needs to happen as soon as possible.
An inevitable operation?
Also, the foundation demands that the remaining assets be divided among the creditors to maximize residual value. Now, the Singapore-based cryptocurrency lender is forced to consider liquidating its holdings.
However, cryptocurrency lender Hodlnaut anticipated the current situation. In August 2022, Hodlnaut applied to the Singapore High Court to be placed into receivership. The idea was to avoid any forced liquidation of customers’ assets. “We aim to avoid a forced liquidation of our assets, as this is a sub-optimal solution that will force us to sell our users’ cryptocurrencies such as BTC, ETH and WBTC at these currently low asset prices.“, explained the crypto lender. The company was able to get the protection program it wanted and used it for a few months. But now he has to deal with his various creditors who want only one thing: liquidation.
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Far from dampening my enthusiasm, a failed investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore decided to study and understand the blockchain and its many uses and to transmit information related to this ecosystem with my pen.