Hodlnaut, a Singapore-based crypto lending platform, announced on Monday that it has halted “withdrawals, token swaps, and deposits with immediate effect”, joining a host of other crypto platforms that have taken a similar decision in the last few weeks. “We have reached this difficult decision due to recent market conditions,” Hodlnaut said. The company also said that it has notified the Monetary Authority of Singapore (MAS) that it would withdraw a licence to provide digital token payment services, for which it received approval in March.
The platform said that the decision was taken so that Hodlnaut can focus on stabilising its “liquidity and preserving assets”, keeping users’ long-term interests in mind.
While no date has been announced on when crypto withdrawals and token swaps will resume, Hodlnaut said that it will share the next update on August 19. “We apologise that we are unable to facilitate any withdrawal of funds at this juncture,” the company added.
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Users will still be able to access their accounts, and also continue earning interests on their funds “until further notice”. However, Hodlnaut is asking users to refrain from making new deposits into their accounts, as the amount will not be credited.
Owing to the major crypto meltdown that began with the TerraUSD and LUNA crash in May this year, several crypto platforms have been hard hit by the ongoing poor market performance. Companies such as Celsius, Voyager Digital, and Three Arrows Capital (3AC) filed for bankruptcy, while Vauld, Zipmex, and CoinFLEX briefly halted withdrawals as well.
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“Please stay vigilant and note our official communication channels mentioned above. If you are contacted by an account claiming to be associated with Hodlnaut, you may assume it’s not us, as we will not reach out from other channels,” Hodlnaut said. “We wish that the situation was different, but we are determined to find the best possible outcome for our users and will keep our valued users informed every step of the way.”
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