24/7 Cryptocurrency News

What Happens If Hodlnaut Gets Liquidated? Crypto Lender Lays Off 80% Staff

Published by
What Happens If Hodlnaut Gets Liquidated? Crypto Lender Lays Off 80% Staff

A few days ago, crypto lender Hodlnaut halted withdrawals and subsequently announced it will be going under judicial management in Singapore to prevent liquidation; it has now taken further steps to stabilize liquidity and also laid off 40 members of its staff.

Advertisement

TerraUSD crash is the reason for our current situation – Hodlnaut

Hodlnaut in its most recent statement confirmed that its current woes stem from losses incurred by its Hong Kong subsidiary during the TerraUST crash. The company is seemingly doing all it can to not have to liquidate its assets, which includes BTC and ETH, at ‘today’s depressed price’

It has also said that the Singapore Attorney-General / Singapore Police Force are already involved but did not give details, Hodlnaut however assured users that all it’s doing is in their best interest. Furthermore, the firm has laid off 80 percent of its staff in order to cut back on expenditure.

For the interim judicial management— A Singaporean court system where an official is appointed to oversee business in troubled firms for a given period of time, the company relayed that the process has begun and its lawyers attended the first case conference on 18 August.

Advertisement

What happens if Hodlnaut gets liquidated?

The company in the post wrote that the interim judicial management process is what it believes to be best because other than that, Hodlnaut will most likely get liquidated, and this will not be good for both the users and the company considering current market prices.

In the event of a liquidation, all assets of the company are sold first, and then distributed to our users equally in proportion to their holdings. What this would mean is that all users (whether you have deposited BTC, ETH or stablecoins) would likely only get back a fraction of what was initially deposited, The company wrote.

It also assured users that once an interim manager is appointed, he will take up a managerial position in the company and make decisions in the best interest of the users.

Advertisement

Share
Abigal Vee

Abigal .V. is a cryptocurrency writer with over 4-years of writing experience. She focuses on news writing, and is skilled in sourcing hot topics. She’s a fan of cryptocurrencies and NFTs.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

XRP Treasury Holdings Hits $11.5B as Nasdaq-Listed Reliance Global Adds $17M in Fresh Buy

XRP holdings in corporate treasuries have now surpassed $11.5 billion in value. This follows news…

October 8, 2025
  • 24/7 Cryptocurrency News

FOMC Minutes, Jerome Powell Speech: Will Bitcoin Recover or Retrace Further?

Bitcoin and altcoins falter ahead of the FOMC Minutes release and Jerome Powell speech due…

October 8, 2025
  • 24/7 Cryptocurrency News

“Meme Coin SZN Is Here,” Says CZ As GIGGLE, 4 Price Skyrocket to All time Highs

Binance’s Changpeng “CZ” Zhao made a post suggesting the start of the BNB meme coin…

October 8, 2025
  • 24/7 Cryptocurrency News

CZ’s YZi Labs Commits $1 Billion Builder Fund As Binance Coin Surpasses XRP

Changpeng "CZ" Zhao's family office YZi Labs announced $1 billion Builder Fund to fuel BNB…

October 8, 2025
  • 24/7 Cryptocurrency News

Expert Sees LTC Crashing to $50 Even As Litecoin ETF Approval Reaches Final Stage

Litecoin (LTC) has been under investors' radar recently, after a 10% rally over the past…

October 8, 2025
  • 24/7 Cryptocurrency News

CleanCore’s Dogecoin Treasury Pays Off Big With $20M Gains as Holdings Near 1B DOGE

CleanCore’s Dogecoin Treasury has reported over $20 million in unrealized gains just weeks after launch.…

October 8, 2025