Crypto lending platform Hodlnaut laid off 40 staff and said it’s being investigated by the Singapore police.
The Singapore-based company said the layoffs were to reduce the company’s expenditure and leave it with only about 10 working employees.
On the police investigation, it said that “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.”
Hodlnaut is the latest in a string of global crypto players to run into difficulties following a sharp sell-off in markets that began in November. After several brief pauses, the sell-off regained momentum in May with the collapse of the paired tokens Luna and TerraUSD.
Hodlnaut paused crypto withdrawals earlier this month and has applied for a type of creditor protection.
- Reuters, with additional editing from Alfie Habershon