Singapore-based cryptocurrency lending service Hodlnaut said the company is under police investigation. In addition, the service has reduced 80% of the staff.
An article on the company’s blog notes that there are ongoing “trials” between Hodlnaut, the Attorney General of Singapore and the police. The company filed an application for transfer to judicial administration. If the application is approved, then all processes in Hodlnaut, including reimbursement to affected users, will be handled by a court-appointed administrator.
The article also emphasizes that the company’s liquidity problem arose due to losses during the collapse of the UST stablecoin and the Terra ecosystem. Against this backdrop, Hodlnaut has experienced “unusually high withdrawal volumes, an overall decline in the cryptocurrency market, and challenges associated with certain high-profile clients.”
To reduce costs, Hodlnaut laid off 40 people, which is 80% of the company’s employees. According to the statement of the service, the remaining number of people “is quite enough to perform key functions.”
Recall that the Hodlnaut service announced the suspension of the withdrawal of funds in early August, and later applied to the court with a request to provide judicial protection of the company’s assets from the claims of creditors.
Source: Bits
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