Troubled cryptocurrency lender Hoddleknot said there were “pending proceedings” between the firm and Singaporean authorities, although it did not elaborate. A statement issued on Friday said the proceedings involved the Attorney-General’s Chambers and the Singapore Police Force, and that it was unable to disclose any further information on the matter. Hoddlenot also said he has laid off about 40 people, or 80 percent of the workforce. The rest of the team is needed to help with key tasks.
inside Recent blog posts, the company said it is currently working on plans to stabilize its liquidity, cut costs and stay in Singapore. As part of the measures, Hodlnaut has laid off 40 of its employees, representing 80 percent of its workforce. Besides, its interest rate has been reduced to 0 percent APR. In the question-and-answer section of his blog post, Hoddlenot acknowledged that there are pending proceedings between the company and the Attorney General as well as the Singapore Police Force.
“There are pending proceedings between Hoddlenot and the Singapore Attorney-General/Singapore Police Force. However, while Hodlnaut is unable to disclose any information in this regard, we believe these actions are taken in the best interest of our users,” the company wrote.
The Post further disclosed that the troubled company has applied to be placed under judicial management. Once approved, the “final decision-making power over all aspects of the going forward company” will be handed over to the judicial manager.
The company further explained that the judicial management will help avoid the liquidation of Bitcoin and Ether holdings at current prices, which are far from their all-time highs recorded in 2021. It is important to note that all assets are first sold and distributed to users. in proportion to their holdings in case of liquidation. Additionally, judicial management will enable the company to implement its recovery plan and rehabilitate.
Hodlnaut also said that it understands the need for users to access their funds quickly. For this reason, they are planning to allow users to fully withdraw their initial deposits as well as accrued interest at a discounted amount. However, they will have to wait as the company is already applying for judicial administration. In this case, the Judicial Manager will make such a decision.
“This process must be reviewed and approved if a judicial manager is appointed,” he wrote.
