Bad News From This Cryptocurrency Company On The Verge Of Bankruptcy! –

The fall of Terra (LUNA) has had far-reaching consequences in the crypto market. It led to a crash of crypto companies, including leading hedge fund Three Arrows Capital and crypto lenders Celsius Network and Voyager Digital. Creditors of the cryptocurrency lender Hodlnaut, which the collapse has driven into bankruptcy, have rejected a restructuring plan for the company. Creditors demand the liquidation of the company and its receivables.

Cryptocurrency company’s creditors seek liquidation

Creditors of cryptocurrency lender Hodlnaut have rejected a restructuring plan for the company, according to a Bloomberg report. Bloomberg said on Friday that he favors liquidation, saying that his choices better serve the interests of the company, according to the filing by Hodlnaut’s interim judicial directors.

The proposed restructuring plan would allow Hodlnaut’s executives, who were at the helm at the time of its collapse, to continue running the company. The liquidator wrote in the filing that one of the creditors, the Algorand Foundation, “will maximize the remaining assets of the company for distribution.” As we reported, Hodlnaut froze withdrawals in August. It was also placed under interim judicial management (IJM), a type of debt restructuring in which another entity manages a distressed business and its assets and assets.

Forensic executives said the lender’s woes stemmed from the collapse of the Terra ecosystem last year, which Hodlnaut executives downplayed its exposure to. According to IJM, the firm actually converted a significant amount of crypto into TerraUSD (UST). This resulted in losses of approximately $190 million. Some sources said the organization was aware of the financial damage months ago, but hid the truth by deleting thousands of ‘key’ documents. Singapore law enforcement also claimed that Hodlnaut was defrauding customers and launched an investigation.

Hodlnaut’s creditors reject restructuring plan

Hodlnaut’s key creditors insist that the cryptocurrency lender go into liquidation as soon as possible. Some creditors of troubled cryptocurrency lending firm Hodlnaut reportedly dislike the proposed restructuring plan, which could keep company executives at the helm. Instead, they prefer to see the company liquidated because they believe it will give them access to their frozen assets.

According to a Bloomberg report, Hodlnaut’s key creditors want the firm to go into liquidation as soon as possible, in hopes that “the company can maximize its remaining assets available for distribution.” They oppose the potential restructuring plan that allows managers who allegedly have roles in the organization’s problems to continue running the organization.


Singapore-based Hodlnaut halted withdrawals, deposits and token swaps in August last year, citing ‘difficult market conditions’. He then reduced the size of his team by 80% and lowered interest rates. The crypto lender has requested to be placed under judicial management before the Singapore Supreme Court to ‘improve its business’ and prevent the forced liquidation of its assets. Local authorities approved the appeal and appointed Rajagopalan Seshadri, Paresh Jotangia and Ho May Kee as interim judicial directors of the firm.

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