Hodlnaut, a distressed cryptocurrency lender based in Singapore, has announced that it has let go of eighty percent of its personnel in an effort to put into action a recovery plan after suffering a significant blow to its financial health.
Since suspending withdrawals, Hodlnaut has announced, according to a blog post published on Friday, that it has let go of 40 employees, which accounts for 80% of the personnel. The company claims that layoffs are inevitable as a result of the team’s efforts to put into action a strategy for recovery, which includes a decrease in expenditures as one of the first stages towards achieving this goal.
The financially troubled company will also make an effort to stabilize its liquidity by cutting down on its burn rates in the near future. As a result, the annual percentage rate (APR) of “all open term interest rates” has been reduced to 0%, and this change is scheduled to go into effect on the 22nd of August at 5:00 pm Singapore time.
the soundness of Hodlnaut’s finances
Following the failure of TerraUSD and the wider market meltdown that swept the entire ecosystem and caused a precipitous drop in cryptocurrency prices, Hodlnaut was one of the many cryptocurrency companies that suffered losses.
After being compelled to suspend customer withdrawals, the company has been forced to put together several plans for its recovery, one of which is to seek judicial management. In Singapore, this is a process that involves the courts in which a company seeks protection (a moratorium) from liquidation while it starts on a recovery effort. The goal of this process is to give the company more time to try to get back on its feet.
According to the statement released by the company, even if the judicial motion is granted, the company’s cryptocurrency holdings, including Bitcoin (BTC/USD) and Ethereum (ETH/USD), will not be liquidated in a way that could have an effect on the consumers. The Singapore Court is scheduled to begin hearing the application to acquire an interim Judicial Manager on Monday, August 22, 2022. The process to acquire an interim Judicial Manager has already begun.
In the meantime, the attempts being made by the corporation to manage the crisis are likely to also depend on an investigation that is currently being conducted by the Singapore police.
Hodlnaut did not disclose any precise specifics regarding the ongoing police procedures; instead, they merely mentioned that the “measures are done in what we think to be in the best interests of our consumers.”
Invezz was the first publication online to report that Singapore-based cryptocurrency lender Hodlnaut has cut employment by 80%.