This Cryptocurrency Company Announces It’s Under Police Investigation!

in distress cryptocurrency His agency, Hodlnaut, announced that it was facing police investigation and laid off most of its staff.

Singapore-based Cryptocurrency Company Holdnaut Under Police Investigation

The Singapore-based cryptocurrency firm said in a blog post yesterday that it has “pending investigations” between it and the Singapore Attorney General and the Singapore Police Department.

Hodlnaut stopped withdrawals earlier this month and later filed for creditor protection in Singapore, seeking time to resolve its liquidity issues.

With this move, the company became the last company to freeze client funds after the collapse of stablecoin UST and hedge fund Three Arrows Capital, whose price is now close to zero.

events in May bitcoin The price was also affected.

Singapore-based Vauld is also in a similar situation, as is the South Asian crypto exchange Zipmex.

Hodlnaut had applied for judicial administration. According to today’s blog post, if successful, the move will transfer “final decision-making authority on all matters going forward for the company” to the judicial director.

The company added that its financial difficulties stemmed from the losses suffered during the UST collapse, as well as “unusually high withdrawal volumes, an overall drop in crypto prices from their 2021 highs, and issues with certain users who deposited significant cryptocurrencies into Hodlnaut.”

Hodlnaut has also taken important steps to reduce costs. In today’s blog post, it was stated that since the startup stopped withdrawals, it has laid off 40 employees, or about 80% of its staff.

“The current team we retain is, in our assessment, the number of staff required to perform key functions,” the company added.

*Not investment advice.