Crypto Firm Hodlnaut slashes 80% of staff Amid Court Proceedings

Vinod Dsouza
Source: Moneycontrol

Cryptocurrency lender Hodlnaut halted withdrawals, token swaps, and deposits on August 8, citing the current “market conditions.” The beleaguered firm filed for creditor protection in Singapore on Tuesday to avoid forced liquidation of assets. Holdnaut reportedly held $187 million in TerraUSD, and its troubles began after it plummeted to $0 in May, suffering widespread losses. However, the firm confirmed that there are “pending proceedings” between the company and the Singapore police, which also involves the state’s attorney-general. In a blog published on Friday, Holdnaut revealed they had fired 80% of its staff, up to 40 employees.

Also Read: Hodlnaut files for creditor protection instead of selling users’ Bitcoin, Ethereum

The layoffs were initiated to reduce the company’s expenditure and help it remain afloat. The rest, 20% of the employees, would play a vital role in the firm’s recovery, 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.”

The blog also stated that the company’s founders are currently in Singapore and will be available for all legal proceedings. The founders also claimed that they are “working hard on the recovery plan” and will bring Hodlnaut to stability.

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Hodlnaut Confirms They Have No Holdings In Celsius

The firm repeatedly confirmed in the blog post that it had not deposited any assets with Celsius. They revealed that even Celsius has not borrowed nor received any assets from Hodlnaut.

“Celsius has neither borrowed nor lent to Hodlnaut. Whilst Hodlnaut has an account with Celsius, Hodlnaut has not deposited any assets with Celsius.”

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Also, the lender did not provide detailed information about the court proceedings citing in “best interest of users.” They wrote, “There are pending proceedings between Hodlnaut and the Singapore Attorney-General / Singapore Police Force. However, while Hodlnaut is unable to disclose any information in this regard, these actions are taken in what we believe to be in the best interests of our users.”