Crypto-lending platform Hodlnaut axes 80% of staff

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Singapore-based cryptocurrency-lending platform Hodlnaut, which had, on August 8, halted withdrawals, token swaps and deposits, citing liquidity constraints, on Friday announced the layoff of 80 percent of its employees, around 40 of them, to reduce expenditure.

The remaining 20 percent, the company said, would play a vital role in the firm’s recovery.

“Since we halted withdrawals, we have also laid off 80 percent 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,” a statement by the company stated.

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It added that the company’s founders are currently in Singapore and will be available for all legal proceedings.

Working hard on recovery plans, claim founders

The founders also claimed that they were “working hard on the recovery plan” and will bring Hodlnaut to stability.

To prevent forced liquidation of assets, the beleaguered company had, on Tuesday, applied for creditor protection in Singapore.

According to reports, Hodlnaut held $187 million in TerraUSD, and its problems started when it crashed to zero in May, leading to significant losses.

However, the firm acknowledged that there are "pending processes" between it and the Singapore police, in which the attorney general of the country is also involved.

Says no holdings in Celsius

The company said, Celsius, the bankrupt cryptocurrency-lending firm, has neither borrowed nor lent to Hodlnaut. While Hodlnaut has an account with Celsius, it has not deposited any assets with Celsius, the former said.

Refrains from providing info on court proceedings

Hodlnaut cited the "best interest of consumers" as a reason for withholding specific information regarding the court proceedings.

“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,” it stated.