Key creditors of Singapore crypto lender Hodlnaut said they prefer liquidation of the firm instead of the proposed restructuring plan, according to a Bloomberg report, citing a court filing by the firm’s court-appointed interim judicial managers.
Algorand Foundation, one of the creditors, said in the filing that the liquidation should be taken as soon as possible in order to “maximise the remaining assets” of the firm for distribution, the report added.
The news comes around six months after Hodlnaut suspended withdrawals, token swaps, and deposits in early August last year, citing market conditions. The firm was granted protection from creditors on August 30.
The global crypto industry has experienced a series of business collapses and bankruptcies in 2022, including downfall of crypto lender Celsius Network, hedge fund Three Arrows Capital, crypto broker Voyager Digital, crypto exchange FTX, and more.