More blockchain and crypto companies in Southeast Asia are facing upheavals in their business, including Singapore-based Hodlnaut and Thailand-based Bitkub.
SET-listed PROEN drops digital asset investment in Bitkub
Thailand-listed telecom and internet infrastructure firm PROEN has terminated an investment transaction with local crypto asset company Bitkub, after SCBX recently decided to delay its share acquisition of Bitkub.
PROEN said in a notice to the Stock Exchange of Thailand that it had earlier agreed to invest 73 million baht ($2 million) in 250,000 KUB coins, but terminated the planned transaction on August 17, due to various factors, including the volatility of the KUB coin price, which could impact the company in a serious manner.
PROEN added that it will continue as a “tech Partner” to Bitkub by sharing expertise and contributing to the infrastructure development of Thailand’s digital economy.
Last month, SCBX, the holding company of Thailand’s oldest lender Siam Commercial Bank, said it had extended the due diligence period for its investment in Bitkub.
Earlier in November 2021, SCBX announced that it will acquire a 51% stake in Bitkub for 17.85 billion baht (then $537.2 million), a deal that valued the digital asset exchange at $1 billion. The investment was initially expected to complete by Q1 2022.
Crypto exchange Hodlnaut slashes 80% staff
Singapore-based crypto borrowing and lending platform Hodlnaut said it has laid off 80% of its employees as a way to reduce costs given its financial stress.
The lay offs represented about 40 employees of the company, it said in a Friday statement.
Hodlnaut’s present financial circumstances are a result of losses suffered by Hodlnaut’s Hong Kong subsidiary during the TerraUSD crash, unusually high volumes of withdrawals, the overall decline in cryptocurrency prices from their 2021 highs and issues relating to certain users who have deposited substantial amounts of cryptocurrency with Hodlnaut.
The company earlier announced it went into a judicial management process. A judicial manager will be appointed by the Singapore Court, who “will step into the place of Hodlnaut’s management and make decisions on behalf and in the best interest of our users”, it said.
The judicial management “provides Hodlnaut with the opportunity to execute its recovery plan and rehabilitate the company”, it added.
Founded in 2019, Hodlnaut claimed on its website that it had 5,000 users in May 2021, and $234 million in AUM in April that year.
Earlier this month, the Monetary Authority of Singapore said it cancelled its in-principle approval for Hodlnaut to obtain a digital payment token services licence.