Potential buyers inquiring about embattled Singapore crypto lender Hodlnaut, claims against FTX

SINGAPORE – Potential buyers are inquiring about purchasing

struggling crypto lender Hodlnaut Group

and its claims against bankrupt digital asset exchange FTX.

An affidavit seen by Bloomberg News said “various parties” who were interested in acquiring Singapore-based Hodlnaut’s crypto platform and FTX claims had contacted the interim judicial managers overseeing the company after it sought protection from creditors.

The judicial managers were in the process of signing non-disclosure agreements with the potential investors, the document showed.

The affidavit indicated that as at Dec 9, Hodlnaut owed a combined US$160.3 million (S$212.7 million), or 62 per cent of outstanding debt, to creditors including Algorand Foundation, Samtrade Custodian and S.A.M. Fintech.

Hodlnaut did not immediately reply to a request for comment.

Hodlnaut, which also has operations in Hong Kong,

halted withdrawals in August amid 2022’s crypto rout.

It was one of many lenders to hit the buffers. FTX accounted for about 72 per cent of the digital assets the platform deployed on centralised exchanges, with an estimated market value of $18.5 million, according to a November filing.

In January, key Hodlnaut creditors

rejected a proposed restructuring plan and said they preferred

to liquidate the company.

BLOOMBERG