Hodlnaut, a Singapore-based crypto lender, has cut off 80% of its staff, or about 40 workers, in an effort to stabilize the firm. Additionally, starting on August 22, the company has chosen to change the open term interest rates to 0%.
The company said in a statement that it has sought to enter judicial administration owing to its “financial health,” noting the Terra crash in May and the general drop in the cryptocurrency market as some of the causes of its losses.
This implies that if the application is accepted – pending a hearing scheduled for August 22 – a court-appointed judicial manager will take over the company’s activities and assist it in recovering.
After the cryptocurrency lender’s activities were suspended earlier this month, withdrawals of money during this period are still not supported.
The Singapore police are involved in legal actions, according to Hodlnaut, albeit it is “unable to release any information in this respect.” The company told consumers that its founders were in Singapore and were “working diligently on the recovery strategy.”
Over US $317 million of the company’s assets may have been exposed to the UST blockchain collapse through its Hong Kong subsidiary. The company was launched in 2019 by Juntao Zhu and Simon Lee. The company lost US $190 million during the meltdown, according to a series of tweets by blockchain expert FatManTerra.
According to Hodlnaut, it plans to provide its subsequent status report on the matter on August 23.
