Crypto Lender Hodlnaut Faces Singapore Police ‘Actions’ and Job Cuts

The firm, which is the latest in the crypto world to freeze withdrawals, said it is engaged in “proceedings” with authorities.

AccessTimeIconAug 19, 2022 at 5:32 a.m. UTC
Updated Aug 19, 2022 at 7:49 p.m. UTC

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, 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.

DISCLOSURE

Please note that our privacy policy, terms of use, 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 cryptocurrencies 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.

CoinDesk - Unknown

Danny is CoinDesk's deputy business editor. He owns BTC, ETH and SOL.

CoinDesk - Unknown

Danny is CoinDesk's deputy business editor. He owns BTC, ETH and SOL.

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC