Hodlnaut Latest Crypto Lender to Freeze Withdrawals

Crypto lender based out of Singapore, Hodlnaut is the latest cryptocurrency company to stop withdrawals because of “recent market conditions.”

The announcement was made on Hodlnauts website, the company says it made this decision to allow it “to focus on stabilizing our liquidity and preserving assets” while working in collaboration with local law firm Damodara Ong LLC on the “feasibility and timelines” of its restructuring and recovery plan.

Holdnaut received In-Principle Approval (IPA) from the MAS “to provide digital payment token (DPT) services as a Major Payment Institution.”

The firm is now letting Singapore’s Monetary Authority (MAS) that it is withdrawing its license application. Due to this revoking of its application, the corp will no longer allow token swaps on its platform.

August 19th is reported when the lender gives more information on this matter but does not mention any day the unfreezing of an individual’s assets will begin.

Since the Terra ecosystem's downfall in May, the entire crypto industry has been rocked by liquidity concerns. With Three Arrows Capital being one of the most prominent players recently applying for bankruptcy, multiple other lenders seek help before inevitably going under.

Lenders with no more liquidity to lend have all resorted to this tactic of stopping the withdrawals to help keep the company afloat. Both Celcius and Vauld were guilty of pulling this just days before filing for bankruptcy.

After de-pegging from the U.S dollar, Terra’s algorithmic UST stablecoin collapsed earlier this year due to large withdrawals coming from the Terra DeFi platform Anchor. The industry has continually not had a break since then; this crypto winter seems to be here to stay for the time being.