Hodlnaut came under police investigation and laid off 80% of employees

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Singapore-based cryptocurrency lending service Hodlnaut reported that the company is under police investigation. In addition, the service has reduced 80% personnel.

An article on the company's blog notes thatThere are now “proceedings” between Hodlnaut, the Singapore Attorney General and the police. The company filed an application for transfer to judicial administration. If the application is approved, then all processes in Hodlnaut, including compensation for affected users, will be handled by a court-appointed administrator.

The article also emphasizes that the problem withThe company's liquidity arose due to losses during the collapse of the UST stablecoin and the Terra ecosystem. Against this backdrop, Hodlnaut faced “unusually high withdrawal volumes, a general decline in the cryptocurrency market, and issues related to certain large customers.”

To reduce costs, Hodlnaut cut 40people, which is 80% of the company's employees. According to the service, the remaining number of people is “quite enough to perform key functions.”

Let us remind you that the Hodlnaut service announcedsuspending the withdrawal of funds in early August, and later went to court with a request to provide judicial protection of the company's assets from claims of creditors.