Some creditors of the distressed cryptocurrency lender – Hodlnaut – are reportedly not fond of the proposed restructuring plan that could enable the company’s directors to stay at the helm.
Instead, they would rather see it going into liquidation, believing this will grant them access to their frozen assets.
- According to a Bloomberg coverage, key creditors of Hodlnaut want the firm to go into liquidation as soon as possible, hoping it could “maximize the company’s remaining assets available for distribution.”
- They opposed the potential restructuring plan that permits directors (who allegedly have a role in the entity’s issues) to continue running the organization.
- The Singapore-based Hodlnaut paused withdrawals, deposits, and token swaps in August last year, citing “difficult market conditions.” It later trimmed the size of its team by 80% and decreased its interest rates.
- The crypto lender requested to be placed under judicial management with the Singapore High Court to “rehabilitate its business” and avoid forced liquidation of its assets.
- The domestic authorities approved the appeal and appointed Rajagopalan Seshadri, Paresh Jotangia, and Ho May Kee as the firm’s interim judicial managers.
- Hodlnaut admitted in October to losing nearly $200 million due to its exposure to Terra’s algorithmic stablecoin – UST. Some sources indicated that the organization was aware of the financial damage months ago but hid the truth by deleting thousands of “key” documents.
- Singaporean law enforcement agents have also alleged Hodlnaut of defrauding customers and launched an investigation against it.