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, which was 80% of its staff, and slashed interest rates to a 0% annual percentage rate 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, and it is now seeking protection from its creditors.
Hodlnaut is one of the many crypto firms such as hedge fund Three Arrows Capital and lenders Voyager Digital and Celsius Network to stumble under the cratering market condition. In its blog post, Hodlnaut cited “losses suffered” from the crash of the terraUSD stablecoin in May.
A Singapore court will hear Hodlnaut’s legal protection plea on Monday and may appoint an interim judicial manager to oversee the company’s financials in place of its current directors.