Singapore-based crypto lender Hodlnaut freezes withdrawals, deposits

Cryptocurrency lender Hodlnaut has announced to freeze withdrawals, token swaps and deposits amid the harsh crypto winter.

The company has also informed the Monetary Authority of Singapore (MAS) to withdraw its licence application, no longer providing regulated digital payment token (DPT) services or token swaps.

"To all users, we regret to inform you that we will be halting withdrawals, token swaps and deposits with immediate effect. We have reached this difficult decision due to recent market conditions," the company said in a statement.

"For the avoidance of doubt, Hodlnaut will also cease all borrowing and lending services," it added.

Hodlnaut has over $500 million in assets under management, according to Crunchbase data.

The company said it was "actively working" on the recovery plan.

"Our next update will be on Friday, 19 August 2022," it informed.

The crash of Terra USD in May triggered a ripple effect in the global crypto market and since then, crypto hedge funds like Three Arrows Capital, Voyager Digital, Celsius Network collapsed while others like Babel Finance and Vauld halt withdrawals.

Several crypto platforms have also laid off thousands of employees.

Hodlnaut said that "this difficult decision was taken for us to focus on stabilising our liquidity and preserving assets" while it works to find the best way to protect its users' long-term interests.

--IANS

na/