The Singapore-based Lending Platform Hodlnaut Suspends Withdrawals

Key Takeaways:

  • Hodlnaut announced that deposits, token swaps, and withdrawals were halted.
  • Hodlnaut emphasized that this action was taken to stabilize liquidity and protect assets.
  • Hodlnaut is currently collaborating on the plan’s execution, viability, and timeframe with the Singaporean law firm Damodara Ong LLC.

Hodlnaut, a Singapore-based platform for lending cryptocurrencies, announced that it has halted all transfers, swaps, and withdrawals due to “recent market conditions.” The company also stopped deposits and token swaps, as stated in a statement. In response, it is working on a recovery plan with the Singaporean law firm Damodara Ong LLC. 

The following public update is anticipated to be released on Friday, August 19, 2022.

Holdnaut also stated that it had withdrawn its license application to the Singaporean Monetary Authority (MAS). Hodlnaut may no longer provide digital payment token (DPT) services in the Asian region due to this transition.

The company offered investors the chance to earn interest on their cryptocurrency holdings by lending out their tokens when it first opened for business in 2019. It is one of many cryptocurrency lenders that have suffered losses as a result of the recent drop in the value of digital assets, which has eliminated nearly $2 trillion in value from the sector

The announcement is noteworthy, though, because it was made several weeks after it seemed that the decline in the value of underlying assets had ended. It can be said that the stir that began with the downfall of the Luna/Terra network and also included Three Arrows Capital, Voyager Digital, and the Celsius Network is still impacting the market.

According to the platform, stopping withdrawal operations and token swaps was a crucial step to stabilize the liquidity and give the team time to connect carefully with the legal experts to develop the best possible restructuring and recovery plan for users.

Users were urged to avoid making deposits because the money would not be given credit to their accounts due to the suspended withdrawal requirements.

Users impacted by the development have expressed their dissatisfaction with Ceci platforms on Twitter.

Like @depopulationCVd, many users are concerned about what will happen to their assets.

Hodlnaut has also stopped the process of requesting a license from the Singaporean Monetary Authority. Token swaps, a regulated service, cannot be backed without this application. Hodlnaut has said it will continue sending interest payments to its clients until it gets another alert.

TechinAsia released a report on Hodlnaut’s possible exposure to the Terra collapse on July 18. It revealed that Hodlnaut’s two wallets, which had been used to transfer sizable amounts of UST into Terra’s Anchor protocol before the collapse, were linked to the crypto intelligence firm Nansen.

According to Hodlnaut CEO Juntao Zhu, the platform did not incur losses due to Terra’s UST.

Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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