One of the latest crypto lenders in the market, Hodlnault recently revealed that they were engaged in certain ‘proceedings’ with the police. Hodlnault, a Singapore-based crypt lender, also announced that the company was facing mass layoffs along with pending police action. Needless to say, the company is in dire legal and financial straits and so, crypto withdrawals are frozen.
Hodlnault is among the numerous crypto ‘hedge funds’ that suffered great losses this year. Some other brands facing similar problems are Voyager Digital, Celsius Network, and Three Arrows Capital.
In a blog post released last week, the Singaporean crypto lender revealed that the company had to fire around 40 members who accounted for 80% of their total workforce. Interest rates were slashed to 0% per annum as an attempt to cut costs and stabilize liquidity. Hodlnault says that they have been working hard on a plan to recover from this setback. Hodlnault says that the company suffered great losses due to the crash of terra USD stablecoin in the month of May.
However, Hodlnault did not make any comment on the pending police action with the Singaporean authorities. The company froze users’ assets in early August and is now seeking coverage from the creditors of the brand.
A legal court in Singapore is set to hear the protection plea from Hodlnault on 22 August 2022. It is expected that the court may appoint a temporary judicial manager to manage the company’s finances instead of the current directors of Hodlnault.