Danny is CoinDesk’s deputy business editor. He owns BTC, ETH and SOL.
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.
Sign up for Market Wrap, our daily newsletter explaining what happened today in crypto markets – and why.
By signing up, you will receive emails about CoinDesk product updates, events and marketing and you agree to our terms of services and privacy policy.
DISCLOSURE
Please note that our
cookies, and
do not sell my personal information
has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a
strict set of editorial policies. CoinDesk is an independent operating subsidiary of
Digital Currency Group, which invests in
and blockchain
startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of
stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Danny is CoinDesk’s deputy business editor. He owns BTC, ETH and SOL.
Danny is CoinDesk’s deputy business editor. He owns BTC, ETH and SOL.