Hodlnaut implemented the layoffs to save the company money, saying that the remaining 20% of the workers would be crucial for its return. They did not provide details about the lawsuit against Celsius, which they consider contrary to user interests.
Cryptocurrency lending platform Hodlnaut blocked withdrawals, token swaps, and deposits around two weeks ago, citing the difficult market situation. The troubled company wants protection from Singapore creditors to avoid the forced liquidation of assets.
Some reports indicate that Hodlnaut held USD 187 million worth of TerraUSD (UST) before plummeting to USD 0 in May. However, the company stated it was also in a case of pending proceedings with the Singapore police, which also involved the state attorney general. It recently announced that it would lay off up to 80% of its workforce.
There Might Be a Move after the Recent Suspensions
Hodlnaut implemented the layoffs to save the company money and keep it in business. The company said the remaining 20% of the staff would be crucial for its return.
Since they suspended withdrawals, they have also laid off 80% of their employees (around 40 employees) to reduce expenses. They believe that the team they have maintained is the staff necessary to perform relevant functions.
In its blog, Hodlnaut stated that its founders were in Singapore and would be ready for any legal proceedings. They said they had worked on the recovery plan and would eventually restore the system.
The company reiterated it had not placed assets on Celsius or any other crypto lending platform. They did not provide details about the lawsuit, which they consider goes against user interests.
Meanwhile, the FDIC Investigates FTX US over Deposit Insurance Claims
The Federal Deposit Insurance Corporation (FDIC) recently revealed that five cryptocurrency companies had misled investors about the insurance of their deposits. Those entities include exchange FTX.US and its president, Brett Harrison, as well as CryptoSec, SmartAsset, and FDICCrypto.com.
According to the agency, Harrison lied when claiming that direct deposits from employers to FTX.US went to individually FDIC-insured bank accounts. Besides, he said that the company held its stock in FDIC-insured and SPIC-insured brokerage accounts.
Harrison Must Stop Making Insurance Claims
The FDIC said that Harrison and the FTX.US website referred to some non-insured products. They also talked about non-guaranteed deposits in the amount advertised while exploiting the name of the FDIC.
The above US government corporation required Harrison and FTX.US to remove content implying the company was FDIC-insured. It also asked them to refrain from further such claims and to provide written confirmation. Harrison and the cryptocurrency exchange could otherwise face financial penalties under civil law.
Before deleting the above claims, the president of FTX.US said he and his company did not intend to mislead anyone. However, his Twitter page still featured various posts suggesting that the FDIC had indirectly insured FTX.US.
Bitcoin is trading at around USD 21,249 and has accumulated a 0.8% loss over the last 24 hours. While its daily trading volume is above USD 28.81 billion, its market capitalization is about USD 406.43 billion, according to CoinGecko.
By Alexander Salazar
