Hodlnaut, a Singapore-based crypto lender, updated the neighborhood on its judicial administration submitting in addition to introduced two troubling updates.
First, the platform introduced slicing 80% of its workers, roughly 40 folks, “to cut back the corporate’s expenditure.”
Right this moment’s assertion indicated that the remaining workers have been “crucial” for present operations.
Second, and maybe extra troubling, was the information that Hodlnaut is fielding pending proceedings with the Singapore Lawyer-Normal and the Singapore police power. The crypto lender added, “these actions are taken in what we consider to be in one of the best pursuits of our customers.”
The crypto lending agency has but to reply to Decrypt for extra info.
Final week the corporate filed for judicial administration in Singapore, which might see an impartial third-party oversee the agency’s operations in addition to briefly defend Hodlnaut from any authorized claims.
The most recent replace additionally highlighted how submitting for judicial administration would assist the corporate and profit the customers “in the long term.”
The appliance would see that the agency needn’t liquidate its present Bitcoin and Ethereum holdings at a time when costs are particularly low. After that, Hodlnaut’s goal is to revive the asset-to-debt ratio, which might finally permit the agency to unfreeze belongings.
On August 8, Hodlnaut tweeted that it will freeze withdrawals, deposits, and token swaps on the platform stating that “this tough resolution was taken for us to deal with stabilizing our liquidity and preserving belongings, whereas we work to search out one of the simplest ways to guard our customers’ long-term pursuits.”
Singapore takes heart stage in lending disaster
With so many lending corporations and crypto funds having ties in Singapore, the city-state has had a busy bear market.
On July 22, cryptocurrency alternate Zipmex filed for chapter safety in Singapore to keep away from authorized motion from collectors after freezing withdrawals.
Singapore regulators are additionally scorching on the heels of Three Arrows Capital, the now-insolvent crypto hedge fund that had defaulted on its loans to different main crypto lenders.
The Financial Authority of Singapore (MAS) reprimanded the fund, too, “for offering false info to MAS and exceeding the belongings beneath administration (AUM) threshold allowed for a registered fund administration firm (RFMC).”
The MAS has additionally been vocal about establishing new guardrails for crypto customers in order to raised stop extra freezes and platform woes.
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