Singaporean cryptocurrency lender Hodlnaut disclosed massive layoffs and has applied to be placed under judicial management, citing its bleak financial position.
The news comes after the developments on 8 August when the company announced a freeze on withdrawals, token swaps, and deposits. Hodlnaut made the most recent announcement in a blog post, highlighting the fact that it had opted to apply for judicial management.
Put simply, a Singaporean court will hear Hodlnaut’s legal protection plea on 22 August 2022. After that, the court will appoint a manager to review the firm’s accounts and activities as a last resort to avoid liquidation of Hodlnaut’s holdings of Bitcoin (BTC) and Ethereum (ETH). The legal immunity provided by judicial management will also give the company some leeway to chalk out a recovery plan.
Hodlnaut employees appear to bear the brunt of the firm’s dire financial situation. The company fired 40 people (80% of its headcount) and slashed interest rates to 0% APR to stabilize liquidity and cut costs.
The big bang
The Terra Luna crash hit the crypto market like an earthquake, and its aftershocks seem to have a deep impact on the larger crypto market. Hodlnaut is just one of the many crypto firms struggling alongside Three Arrows Capital, Voyager Digital, and Celsius Network.
FAQs
What happened to Hodlnaut?
Hodlnaut, a Singapore-based cryptocurrency lender, faced liquidation after suspending withdrawals, swaps, and deposits.
Is crypto legal in Singapore?
Yes, cryptocurrency is legal in Singapore. The country has established regulatory frameworks and guidelines for the crypto industry.
Which crypto exchange is legal in Singapore?
Several cryptocurrency exchanges are legal in Singapore, including Coinbase & more. These exchanges operate under regulatory supervision.
What is the new law in Singapore about crypto?
Singapore has introduced various laws and regulations to govern cryptocurrencies, including the Payment Services Act (PSA) and the Securities and Futures Act (SFA). These laws aim to enhance consumer protection and mitigate risks associated with crypto activities.
