Hodlnaut has recently made an announcement in regards to reducing its employees. The cryptocurrency lending platform has made the decision of cutting loose its employees as it faces a financial crisis.
Hodlnaut Lays off Workforce and Applies for Judicial Management
As per sources, Hodlnaut has proceeded with cutting off its workforce. The lending platform has announced that it has laid off the majority of its workforce.
In addition to laying off its employees, Hodlnaut has also submitted a request where it demanded to be placed under judicial management.
The company has announced that it has faced with worst financial circumstances ever since it started running its lending operations. This is the reason why they have requested judicial management.
What is happening with Hodlnaut?
For years, Hodlnaut had been offering people investment options in institutions that were authorized to carry out investment activities. The firm helped people acquire cryptocurrency-based loans and it was confirmed that the loans would bear interest.
Ever since the month of May when the TerraUSD ended up getting de-pegged, the firm has found itself facing the worst financial condition.
The financial crisis has led to a point where Hodlnaut recently had to announce that it had halted withdrawal services as it faced a financial crisis.
Initially, the firm had announced that it had halted the withdrawal option due to a financial crisis. But the firm announced on Friday that it had laid off the majority of its employees and sought judicial management as well.
Hodlnaut has confirmed that it is due to their Hong Kong-based cryptocurrency subsidiary that they are facing a dire financial situation.
Hodlnaut has Approached Singaporean Court for Help
According to the latest updates, Hodlnaut has already approached the Singaporean Court for help. They have asked the court to appoint them a manager who will help them review their activities and accounts.
As per the market experts, this is the last step Hodlnaut has taken in order to save itself from liquidation. At present, Hodlnaut has holdings in two major cryptocurrencies that include Ether (ETH) and Bitcoin (BTC).
Purpose of the Judicial Management
With the support from Judicial Management, Hodlnaut expects that it will be able to work on an effective recovery plan. Their skills will help the company rehabilitate and cover its losses to get back on its feet over the course of time.
Hodlnaut’s current debt is very high and they are aiming to restore its 1:1 debt ratio with support from judicial management.
Once their services and debts have been restored to the expected level, they will let the users withdraw their rightful funds. For now, millions of dollars worth of deposits belonging to the users are stuck at Hodlnaut.