Crypto lender Hodlnaut follows other firms in freezing withdrawals

Please fol­low and like us:
Pin Share

Cryp­tocur­ren­cy lender Hodl­naut is the lat­est firm to respond to tumul­tuous mar­ket con­di­tions by halt­ing with­drawals (via Coin­desk). In a post on its web­site, the Sin­ga­pore-based com­pa­ny announced that it’s freez­ing with­drawals, token swaps, and deposits due to an uncer­tain econ­o­my that some say trig­gered a “cryp­to winter.”

Hodl­naut is also rescind­ing its appli­ca­tion to the Mon­e­tary Author­i­ty of Sin­ga­pore (MAS) for a reg­u­la­to­ry license that would allow the com­pa­ny to offer dig­i­tal pay­ment token ser­vices in the city-state. As point­ed out by Coin­desk, the firm already received in-prin­ci­ple approval for the license in March, and its with­draw­al means it can no longer offer token swaps. Hodl­naut says it’s also sus­pend­ing its bor­row­ing and lend­ing ser­vices “for the avoid­ance of doubt.”

The crash of Ter­ra USD in May set off a rip­ple effect across the entire cryp­to indus­try, with last month’s col­lapse of cryp­to hedge fund Three Arrows Cap­i­tal push­ing the embat­tled Voy­ager Dig­i­tal and Cel­sius Net­work into bank­rupt­cy, and oth­er cryp­to firms, like Babel Finance and Vauld, mov­ing to halt with­drawals. A bank­rupt­cy fil­ing spot­ted by Reuters lists Hodl­naut as one of Cel­sius’ insti­tu­tion­al clients.

Accord­ing to Crunch­base, Hodl­naut has over $500 mil­lion in assets under man­age­ment. The com­pa­ny says it’s work­ing with a Sin­ga­pore­an legal firm to come up with a new strat­e­gy and will pro­vide an update to cus­tomers on August 19th.

“This dif­fi­cult deci­sion was tak­en for us to focus on sta­bil­is­ing our liq­uid­i­ty and pre­serv­ing assets, while we work to find the best way to pro­tect our users’ long-term inter­ests,” Hodl­naut states. “We are active­ly work­ing on the recov­ery plan that we hope to pro­vide updates and details on as soon as permissible.”

Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *