Save Hodlnaut: Founders Propose Selling Firm Instead of Liquidation
• Hodlnaut’s founders are attempting to save the company by proposing to sell it instead of liquidation.
• The proposal has been made in an affidavit from the co-founder Simon Lee.
• The company has been working with potential investors to sell its business and other assets.
Hodlnaut’s Troubled Situation
The cryptocurrency lender Hodlnaut is facing financial difficulties and its creditors are pushing for liquidation of the firm. However, the founders have proposed selling the business instead as a better option for creditors than liquidating it.
In an affidavit released on Feb 28, co-founder Simon Lee stated that he and fellow founder Zhu Juntao have reached out to potential ‘white knight investors’ who may be interested in buying up the user base of Hodlnaut and integrating them onto their own digital asset platforms. He believes this would maximize value for creditors.
Creditors such as Algorand Foundation rejected a restructuring plan offer which would allow current directors to oversee operations during a restructuring phase, arguing that there was no benefit for them in doing so and that liquidating remaining assets was in their best interest.
Working With Investors
Since early February, Hodlnaut have been engaging with potential buyers inquiring about purchasing both their business and claims against collapsed crypto exchange FTX.
The fate of Hodlnaut remains uncertain as creditors continue to push for liquidation while founders attempt to find a buyer willing to acquire their user base and integrate them on their own digital asset platforms.