Remember when Hodlnaut suddenly suspended its operations and withdrew its application for a MAS license?
They seem to have gotten themselves into more trouble, as they are now being investigated by the police.
Suspended Operations Due to Recent Market Conditions
If you’re not caught up with crypto news, here’s a recap on Hodlnaut.
On 8 August, Hodlnaut sent a statement to its users, informing them that they are halting withdrawals, token swaps and deposits with immediate effect.
They cited “recent market conditions” as the reason for this decision, saying that this is to help them focus on stabilising their liquidity and preserving assets.
Additionally, the firm will withdraw its application for a license from the Monetary Authority of Singapore to provide digital token payment services. They received in-principle approval for that in March.
By withdrawing their application, Hodlnaut will no longer be able to provide regulated digital payment token services, AKA the token swap feature.
Hodlnaut is also actively working on a recovery plan by consulting with Damodara Ong LLC.
Applied for Creditor Protection, Under Investigations
According to CNA, Hodlnaut had “applied for a form of creditor protection last week”. They have also revealed that the company is under investigation by the Singapore police.
“While Hodlnaut is unable to disclose any information in this regard, these actions are taken in what we believe to be in the best interests of our users,” said Hodlnaut, without revealing any more details on the investigation.
Laid Off 40 Employees, Only 10 Employees Left
Hodlnaut had also reportedly laid off about 40 employees on 19 August, in order to reduce the company’s expenditure. Only about 10 working employees are left.
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Crypto Market’s Collapse?
The crypto market started to show signs of struggle back in May, where two paired tokens, Luna and TerraUSD, collapsed.
You can watch this video to know more abut the collapse:
Soon afterwards, US crypto lender Celsius, as well as Singapore-based hedge fund Three Arrows Capital, filed for bankruptcy in July. In fact, according to court filings, Hodlnaut was one of Celsius’ institutional clients.
Here’s what you need to know about Three Arrows Capital’s bankruptcy:
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Another Singapore-based crypto platform, Vauld, also suspended their withdrawals in early July.
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Featured Image: Reddit
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