Singapore-based crypto platform Hodlnaut halts withdrawals, deposits, and token swaps, citing market volatility, and joins the long list of crypto platforms going bust.
Hodlnaut said in a statement “we have since informed the MAS (Monetary Authority of Singapore) of our intention to withdraw our licence application. Hodlnaut is therefore no longer providing regulated digital payment token (DPT) services, i.e., our token swap feature. For the avoidance of doubt, Hodlnaut will also cease all borrowing and lending services.” Hodlnaut’s withdrawal pause follows companies like Celsius, Voyager Digital, Babel Finance, and Vauld freezing withdrawals.
Since the announcement, Hodlnaut CEO Juntao Zhu has turned his Twitter account private. The company also has disabled its Facebook, Discord, and Reddit pages. The company said it is consulting with Damodara Ong LLC, and working on an execution and recovery plan for the best interests of its users. It is expected to give an update on its recovery plan on August 19.
Hodlnaut’s LinkedIn page still shows $500 million of assets under management, and the company has assured customers that it will still provide interest on their deposits.
In a 2021 blog post, the firm claimed that it integrated “iTrust insure” into its platform, giving users the opportunity access to Nexus Mutual custody cover.
According to the company, the user who purchased the custody insurance will receive the equivalent of their funds in Ethereum (ETH) or DAI tokens if the withdrawals from the custodian wallets are halted for more than 90 days.
Hodlnaut’s problems started with the collapse of TeraLuna crypto and the Singapore-based cryptocurrency hedge fund Three Arrow Capital.
Before Hodlnaut froze withdrawals, Terra whistleblower Fatman warned consumers about the platform, emphasising that “these websites are not as trustworthy as you may think.”
Fatman described how Hodlnaut included Terra’s UST and LUNA (formerly known as classic coins) with high annual percentage yields (APY).
The whistleblower explained that Hodlnaut assured the public it had no exposure to Anchor. But when Terra collapsed on May 9, the platform temporarily banned LUNA and UST trades.
They sold some UST as low as $0.40, degen shorted through bETH cross-margining, had huge, risky shorts on exchanges in the best case scenario, and in a hilarious move of brave defiance, they even re-entered Anchor after the collapse (small size). https://t.co/yfbTET4U4n (15/25)
— FatMan (@FatManTerra) June 26, 2022
The whistleblower also sent an email to the Monetary Authority of Singapore (MAS) in June. He said: “I didn’t believe it was wise for Singaporean authorities to give Hodlnaut any semblance of legitimacy”
Singapore-Based Crypto Lender Hodlnaut Halts Withdrawals As Cryptocurrency Woes Continue & Latest News Update
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