Hodlnaut, a Singapore-based crypto lender, has laid off over 80 percent of its workforce. The crypto lender confirmed the development in a blog post. Additionally, Hodlnaut applied to be put under judicial management owing to its liquidity troubles.
Following the judicial management filing by the firm, the Singaporean Court will now hire a manager to evaluate Hodlnaut’s accounts and operations. Similarly, the filing will enable the crypto lender to execute its recovery from financial troubles fully.
Hodlnaut is undergoing an investigation by the police in Singapore. However, it failed to give further information about the status of the investigation. The crypto lender says it slashed interest rates to 0% APR. According to the firm, the decision will help to stabilize its liquidity and reduce maintenance costs. Its founders are reportedly “working hard on a recovery plan.”
Hodlnaut joins the growing list of crypto lenders facing liquidity troubles due to prevailing market conditions. Recall that a fellow crypto lender, Celsius, is also facing a liquidity crisis and has since halted withdrawals, deposits, and trading on its network a few months ago.
As of press time, the crypto lender is yet to update its customers about a possible resumption of those operations. The same fate also ravages Three Arrows Capital, Vauld, and many others. Like Celsius, 3AC and the rest halted withdrawals, deposits, and trading on their respective networks. Similarly, they dismissed a large percentage of their workforce to cut costs.
After halting withdrawals a few weeks ago, Hodlnaut said customers will still be able to access their dashboard to monitor their balances. Additionally, it says customers can export their transaction history and interest statements. It, however, promises to continue paying out interest accrued according to customers’ balance despite the suspension.
The firm says it will pay users interest every Monday till further notice. Also, Hodlnaut plans to restore its asset to debt ratio to 1:1. According to the firm, this will allow users to withdraw their initial cryptocurrency deposits.
The crypto lender withdrew its license application from the Monetary Authority of Singapore (MAS). This, as revealed, implies that the protocol no longer intends to run as a regulated virtual payment token provider in the country. However, Hodlnaut promises to accelerate its recovery plan and will continue to update the public as things unfold. Also, it promised to respond to users’ inquiries via email, Twitter, and Telegram.
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