Crypto Lending Platform Hodlnaut Fires 80% of Working Staff

Bitcoin Drops Subsequent To Powell’s Inflation Remarks
  • Hodlnaut had $187 million in TerraUSD before it crashed to $0.
  • The company reiterated that it had not placed any assets with Celsius.

Hodlnaut, a cryptocurrency lending platform, froze withdrawals, token swaps, and deposits on August 8 citing market circumstances.  The troubled company seeks Singapore creditor protection on Tuesday to avert forced asset liquidation. According to reports, Hodlnaut had $187 million in TerraUSD before it crashed to $0 in May and started having problems. However, the corporation has stated that it is engaged in “pending proceedings” with the Singapore police, in which the state’s attorney general is also a participant. Hodlnaut announced the dismissal of up to 80 percent of its workforce in a blog post on Friday.

Expected Move After Recent Halt

The layoffs were implemented in an effort to save the firm money and save it from falling over. According to the blog, the remaining 20% of workers would be important in the company’s comeback.

The blog read:

“Since we halted withdrawals, we have also laid off 80% of our employees (being approximately 40 employees), in order to reduce the company’s expenditure. The current team that we have retained are, in our assessment, necessary headcount in order for us to carry out key functions.”

According to the business blog, the firm’s founders are now in Singapore and will be ready for any legal processes that may arise. The founders of Hodlnaut have said that they are “working hard on the recovery plan” and will eventually restore the system to normal operation.

In the blog post, the company reiterated that it had not placed any assets with Celsius. They disclosed that nobody, not even Celsius, had taken money or assets from Hodlnaut. It’s worth noting that the lender gave no specifics about the legal action, saying it was not in the users’ “best interest.” 

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Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.