Hodlnaut Reportedly Laid Off 80% Workforce and Applied for Judicial Management

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.

Leave a Reply

Your email address will not be published.


The United States Government Has Called for Crypto Regulation

Experts and government officials have pinpointed the dangers that come with digital assets. U.S. authorities have warned that digital assets pose a security risk in a recent study. These dangers threaten the stability of the American financial system.  The Study Contends Unless “Proper Regulation” Is Put in Place On March 9, 2022, President Joe Biden […]

Possibility Of a Crypto and Financial Markets Collapse

The market may have seen the arrival of the black swan that nobody saw coming. Credit Suisse is a central global investment bank. There is a real possibility that the bank may collapse, which would lead to a catastrophic market meltdown.  The crypto and finance sectors triggered the conversations that led to this. What Is […]

A New Report Finds EU Sanctions Will Limit Russian Use of Europe’s Crypto Services

These events are occurring while the situation in Ukraine continues to worsen. Earlier this year, the EU restricted only “high-value” crypto-asset transactions to individuals and businesses in Russia. The current sanctions are likely to become more severe for the Russian Federation. EU Sanctions Over Ukraine May Target Russian Crypto Services The EU is getting ready […]

As The Euro and Pound Weaken, Investors Are Turning to Bitcoin

The cryptocurrency industry seems to be thriving. This occurs while many fiat currencies throughout the world are losing value. Ethereum (ETH) and Bitcoin (BTC) are two examples of digital assets attracting investors’ attention. Bitcoin Has Attracted a Large Number of Investors The cryptocurrency market intelligence platform Messari released some new statistics on September 29. According […]

US Instagram & Facebook Users Can Share Flow, Ethereum, And Polygon NFTs

The software development company Meta has now released an official statement favoring NFT collectibles. The firm has made it plain that all Facebook and Instagram users in the US will have access to its services. Recent rollouts have included this feature. Meta Now Connects Cryptocurrency Wallets to Facebook and Instagram Meta began implementing NFT support […]