Hodlnaut Crisis: Crypto Firm Slashes 80% of Staff Amid Court Proceedings
The beleaguered crypto lender Hodlnaut is facing significant challenges. In a dramatic move to stay afloat, Hodlnaut has fired 80% of its workforce. This drastic action comes amid pending court proceedings and an application to be placed under judicial management in Singapore.
The Singapore-based crypto firm Hodlnaut, a cryptocurrency lending firm, has been struggling to navigate the recent volatile market conditions. Despite most crypto companies cutting off only a percentage of their staff, Hodlnaut had to enforce a dramatic change, laying off about 40 people, representing 80% of its total workforce.
Judicial Management and Police Inquiry
Hodlnaut updated the community on its judicial management filing, citing bleak financial circumstances. In its second update this month, the company also announced it is subject to a police inquiry. In response to queries, the police said they are unable to comment on the case as the matter is before the courts.
Withdrawal Freeze and Cost-Cutting Measures
As previously reported, Hodlnaut halted withdrawals, token swaps, and deposits on August 8, citing the current “market conditions.” The firm said in an update that the layoffs are part of a bid to decrease costs and stay afloat. The troubled crypto lender hopes judicial intervention will provide breathing room during this critical period.
The situation remains fluid, and further updates are expected as the legal and financial proceedings unfold. Investors and users are advised to stay informed of developments regarding the Singapore-based cryptocurrency lender.