Singapore-based Hodlnaut freezes customer accounts, drops license application
Singapore-based crypto lending platform Hodlnaut announced Freezing of withdrawals due to unfavorable market conditions.
Holdnaut added that it had withdrawn its application for a license from the Monetary Authority of Singapore (MAS).
Dear users, we regret to inform you that due to recent market conditions, withdrawals, token swaps and deposits will be suspended immediately. We have also withdrawn our application for a MAS license.Here is our full statement https://t.co/5KfHUBzWsn The next update will be on August 19th.
— Hodlnaut (@hodlnautdotcom) August 8, 2022
The move could result in Hodlnaut no longer offering Digital Payment Token (DPT) services in the Asian region.
Meanwhile, the struggling platform said it was working closely with Singaporean law firm Damodara Ong LLC on its recovery strategy. The next Public Update will be published on Friday, August 19, 2022.
Hodlnaut User’s Fate
In the announcement, Hodlnaut said the resumption of withdrawals and token swaps will take some time as the recovery strategy needs to be finalized with stakeholders. Users were advised to refrain from making deposits as the funds would not be credited to their accounts due to the suspension of withdrawal requests.
Users affected by the development have expressed their disappointment with the CeFi platform on Twitter.
The ultimate rekt lesson for CeFi users:
“Not your key, not your code.”
— Crypto Funding (@FundedCrypto) August 8, 2022
Hodlnaut took too long to clean
July 18th Tech in Asia We’ve published a report about Hodlnaut’s possible exposure to Terra’s collapse. Cryptocurrency intelligence firm Nansen has confirmed that he identified two wallets linked to the Hoddle Note that were used to move large amounts of her UST into Terra’s anchor protocol before the collapse.
Hodlnaut CEO Juntao Zhu has denied claims that the platform did not suffer losses in Terra’s UST.
Following the report, Nansen CEO Alex Svanevik called on the lending platform to make users more transparent about the status of their funds.
I would expect more transparency @jt_hodlnaut About who this mysterious trading partner is.
Counterparties had degenerated into MIMs and USTs while controlling client funds. @hodlnautdotcom.
Personally, I think users have an obligation to get more transparency here.
— Alex Svanevik 🐧 (@ASvanevik) July 19, 2022
