Algorand Foundation Among Creditors That Oppose Restructuring of Trouble Crypto Exchange Hodlnaut

Several of the largest creditors of troubled Singaporean crypto lender Holdnaut have indicated that they want the company to be placed in liquidation as opposed to a restructuring, according to a court filing published by Hodlnaut’s judicial managers.

The creditors that oppose a restructuring include Samtrade Custodian Limited, which is currently in liquidation, and the Algorand Foundation. These creditors have claims worth $228 million Singaporean dollars (US$170 million).

The announcement published by Hodlanut’s judicial manager states that there is “no white knight investor” for the lender, leading to an absence of fresh capital.

Creditors initially indicated a preference for liquidation in January, with the Algorand Foundation stating in a court filing that liquidation would “maximize the company’s remaining assets available for distribution.”

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In September, the Algorand Foundation declared that it had $35 million in exposure to Hodlnaut.

The Algorand token (ALGO) is currently trading at $0.18 having dropped by 3.34% in the past 24-hours, according to CoinDesk veri.

Edited by Aoyon Ashraf.
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