Crypto Lender Hodlnaut, which is the latest in the crypto world to freeze withdrawals, said it is working with authorities on “proceedings.”
In a blog post on Friday, the Singaporean crypto lender Hodlnaut said that it was laying off many people and that “police proceedings” were pending. This showed how bad things were financially and legally for the latest company to freeze crypto withdrawals.
Hodlnaut wrote in its blog that it had fired 40 people, which was 80% of its staff, and lowered interest rates to 0% in an effort to “stabilize our liquidity” and cut costs. Its founders are still in Singapore and “working hard on a recovery plan.”
The crypto exchange that pays interest said that it is in “proceedings” with Singaporean authorities. Its blog didn’t say much about the details, but it said that the changes were for the best of users. Hodlnaut put a hold on these users’ assets at the beginning of August, and it is now asking its creditors for help.
Hodlnaut is one of many crypto companies that have been hurt by the falling market, like the hedge fund Three Arrows Capital and the lenders’ Voyager Digital and Celsius Network. In a blog post, Hodlnaut said that it had “lost money” when the terraUSD stablecoin crashed in May.
On Monday, a Singapore court will hear Hodlnaut’s request for legal protection. Instead of the company’s current directors, the court may choose an interim judicial manager to keep an eye on the company’s finances.
