Singapore-based crypto lending platform Hodlnaut announced a freeze on withdrawals citing declining market circumstances.
Holdnaut added that it has withdrawn its license application from the Monetary Authority of Singapore (MAS).
Dear customers, we remorse to tell you that we are going to be halting withdrawals, token swaps and deposits instantly resulting from current market circumstances. We have additionally withdrawn our MAS licence application. Here is our full assertion https://t.co/5KfHUBzWsn Our subsequent replace might be on 19 Aug.
— Hodlnaut (@hodlnautdotcom) August 8, 2022
With this transfer, Hodlnaut could not provide digital fee token (DPT) providers within the Asian area.
In the meantime, the struggling platform mentioned it’s working intently with Singaporean regulation agency Damodara Ong LLC on a restoration technique. It is anticipated to situation the following public replace on Friday, August 19, 2022.
The destiny of Hodlnaut customers
In the announcement, Hodlnaut acknowledged that the resumption of withdrawal and token swap will take some time because it must finalize with its stakeholders on the restoration technique. With the suspension of withdrawal requests, customers had been suggested to chorus from making deposits because the funds is not going to be credited to their account.
Users affected by the event have taken to Twitter to specific their disappointment with CeFi platforms.
Ultimate rekt lesson for CeFi customers:
“Not your keys, not your crypto.”
— cryptofunded (@FundedCrypto) August 8, 2022
Hodlnaut took so lengthy to come back out clear
On July 18 TechinAsia printed a report on Hodlnaut’s potential publicity to the Terra collapse. It confirmed that crypto intelligence agency Nansen recognized two wallets linked to Hodlnaut, which had been used to maneuver giant quantities of UST into Terra’s Anchor protocol earlier than the collapse.
Hodlnaut CEO Juntao Zhu denied the declare saying the platform didn’t take losses on Terra’s UST.
Following the report, Nansen CEO Alex Svanevik referred to as out the lending platform to be extra clear to customers on the state of their funds.
I might count on extra transparency from @jt_hodlnaut on who this mysterious counterparty is.
The counterparty was going degen with MIM and UST whereas managing customer funds for @hodlnautdotcom.
Personally suppose customers are owed far more transparency right here.
— Alex Svanevik🐧 (@ASvanevik) July 19, 2022