Crypto Lender Hodlnaut Cuts Majority of Staff, Mentions Police Investigation After Ending Withdrawals

But working with a skeleton crew may be the least of the company’s worries. The company said they had applied to be put under judicial management, a kind of creditor protection for their company as it goes through these market-based pains. It would also protect the company from any legal claims. At the same time, they revealed they were being investigated by Singapore police. Specifically, when answering the question if there were proceedings between the company and cops, the company wrote:

“Yes, there are pending proceedings between Hodlnaut and the Singapore Attorney-General/Singapore Police Force. However, 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.”

Though 40 employees doesn’t seem like a lot in the grand scheme of crypto layoffs. The Verge first reported Thursday based on anonymous internal sources that Crypto.com had laid off hundreds more than the 260 it had previously said it was axing “to ensure continued and sustainable growth for the long term,” according to the exchange’s CEO Kris Marszalek. Though apparently, there were hundreds more staff cut, and Marszalek wouldn’t even tell current employees how many at a recent town hall meeting, according to documents reportedly seen by The Verge.

Unnamed employees told The Verge they were noticing staff going missing from the internal slack or from scheduled meetings. The company had beefed up staff by 50% after the price of crypto peaked in 2021, something in the ballpark of 1,300 additional employees, according to the anonymous sources.

Victoria Davis, Crypto.com’s head of communications, told Gizmodo in an email statement: “We announced reductions in June and since that time we have optimized our workforce to align with current external economic headwinds. We have a strong balance sheet and will continue to invest in product, engineering, and brand partnerships moving forward.”

Though Crypto.com had become a major public face for the crypto sphere thanks to Superbowl ads featuring everyone’s favorite Bostonian Matt Damon and buying out the name to the L.A. Staples Center.

Though since this past spring the price of the most popular digital currencies took a nosedive, and multiple exchanges have experienced cash crunches. Some, like Hodlnaut, have gone so far as to restrict users from withdrawing funds.