Troubled crypto lender and borrower Hodlnaut on Friday laid off about 40 employees since pausing crypto withdrawals and disclosed an investigation by the Singapore police.

The company, which applied for a form of creditor protection last week, did not reveal further details about the police proceedings.

"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," it said, on the police investigation.

Hodlnaut is the latest in a string of global crypto players to run into difficulties following a sharp sell-off in markets that started in May with the collapse of two paired tokens Luna and TerraUSD.

The crypto lender added that the layoffs were to reduce the company's expenditure, leaving it with only about 10 working employees.


(Reporting by Rishabh Jaiswal in Bengaluru Editing by Dhanya Ann Thoppil)