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

Bad News From This Cryptocurrency Company On The Verge Of Bankruptcy!
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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 led to 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 report by Bloomberg. Bloomberg said on Friday that he favors liquidation, saying that his choices serve the interests of the company better than the document drawn up by Hodlnaut’s discontinuous named executives.

The proposed restructuring plan would allow the Hodlnaut 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.” Hodlnaut froze withdrawal processes in August. It has also been placed under the so-called impermanent administration (IJM), a type of debt restructuring where another organization manages a distressed business and its assets and assets.

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

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Hodlnaut’s creditors again reject restructuring plan

Hodlnaut’s key creditors insist that the cryptocurrency lender go into liquidation as soon as possible. Some creditors of troubled cryptocurrency lender 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, hoping that “the company can maximize its remaining assets available for distribution.” They oppose a potential restructuring plan that would allow executives who are alleged to have a role in the organization’s troubles to continue running the organization.

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

Singapore-based Hodlnaut halted withdrawals, deposits and token swaps in August last year, citing ‘difficult market conditions’. He then reduced the size of his group by 80% and lowered interest rates. The crypto lender has sought to be placed under named administration 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 the firm’s discontinuous named directors.

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