Crypto lending company Hodlnaut is battling Singapore police sanctions and layoffs.
The Singaporean crypto lending firm also clarified major layoffs and pending police proceedings, while highlighting the dire financial and legal troubles the firm has faced in its latest freeze on cryptocurrency withdrawals.
Hodlnaut Removes Most of Its Employees
Hodlnaut announced in a statement that he laid off 40 percent of his employees, or 80 percent, in order to balance liquidity and reduce costs. In addition, the company stated that it has reduced the interest rate to 0 percent APR, and that the founders of the company are working on a recovery plan.
In the statement, the company said that it was struggling with the sanctions of the Singapore authority, while giving the details of the incident, he said that all the work was for the benefit of the users. The company froze user accounts in August and is now awaiting creditor protection.
Hodlnaut, along with Three Arrows Capital, Voyager Digital, and Celsius Network, is one of many crypto companies that have been crushed by tough market conditions and struggling companies. In the statement, the company also stated that the reason for this defeat was the chain of problems caused by the collapse of TerraUSD.
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