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A blog post published on Friday In 2019, Singapore-based cryptocurrency lender Hodlnaut revealed major layoffs and ongoing “police proceedings,” highlighting the precarious financial and legal woes of a company that recently suspended cryptocurrency withdrawals.
Hodlnaut said in a blog post that in order to “stabilize our liquidity” and reduce costs, it fired 40 employees (or 80% of its workforce) and slashed interest rates down to 0% APR. The company’s founders are still in Singapore and are “working hard to develop a recovery strategy”.
Cryptocurrency swap shop that pays interest claims to be ‘litigating’ Singaporean authorities. Its blog was mum on specifics, but said the actions were taken to benefit users. In early August, Hodlnaut froze the assets of these users; it is now seeking protection from creditors.
Source: blog post
Hodlnaut also withdrew its application for a licence from the Monetary Authority of Singapore, although the central bank approved the application in principle in March.
The group is the latest in a long line of cryptocurrency lenders to falter due to market pressure this year, with Celsius Network and Voyager Digital both seeking bankruptcy protection. From over $3 trillion in November, the total market capitalization of cryptocurrencies has fallen to just over $1 trillion today.
Along with Three Arrows Capital, Voyager Digital and Celsius Network, Hodlnaut is one of many cryptocurrency businesses that have failed due to devaluation of market conditions and business collapse. Hodlnaut blamed “losses suffered” for the TerraUSD crash in a blog post.
Hodlnaut seeks appointment A judicial manager
The High Court of Singapore has Receive a request from a cryptocurrency lending platform to place it under judicial management to protect creditors from harm.
filed the application on August 13, 2022, five days after the company froze withdrawals, according to a notice on the Hodlnaut website. The application will provide lenders with a temporary hurdle against any legal claims.
On August 22, 2022, the Singapore High Court will hear a crypto lender’s petition for legal protection. The current director of the company may be replaced by an interim judicial manager who will manage company’s finances.
