Singaporean crypto lender Hodlnaut disclosed massive layoffs and pending “police proceedings” in a Friday blog post that underscored the dire financial and legal straits faced by the latest firm to freeze crypto withdrawals.
Hodlnaut said in the blog that it fired 40 people (80% of headcount) and slashed interest rates to 0% APR in an attempt to “stabilize our liquidity” and cut costs. Its founders are “working hard on a recovery plan” and remain in Singapore.
The interest-paying crypto swap shop said it is engaged in “proceedings” with Singaporean authorities. Its blog was mum on the details but characterized the proceedings as in users’ best interest. Hodlnaut froze those users’ assets in early August; it is now seeking protection from its creditors.
Hodlnaut is one of the many crypto firms to stumble under cratering market conditions and imploding companies, alongside Three Arrows Capital, Voyager Digital and Celsius Network. In the blog post, Hodlnaut pointed the finger at “losses suffered” from TerraUSD’s crash.
A Singapore court will hear Hodlnaut’s legal protection plea on Aug. 22, 2022. The court may appoint an interim judicial manager to oversee the company’s financials in place of its current directors.