Cryptocurrency lender Hodlnaut is the latest company to respond to turbulent market conditions by halting withdrawals (Going through Coindesk). In a post on its websitethe Singapore-based company has announced that it is freezing withdrawals, token exchanges and deposits due to an uncertain economy that some say has triggered a “crypto winter”.
Hodlnaut is also canceling 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 Coindeskthe company already received approval in principle for the license in March, and its withdrawal means that it can no longer offer token exchange. Hodlnaut says it is also suspending its borrowing and lending services “for the avoidance of doubt.”
The Terra USD crash in May sparked a ripple effect across the crypto industry, with crypto hedge fund Three Arrows Capital’s collapse last month pushing the beleaguered Voyager Digital and Celsius network to bankruptcy, and other crypto companies, like Babel Finance and Vault, moving to stop takedowns. A bankruptcy filing Point by Reuters lists Hodlnaut as one of Celsius’ institutional clients.
According Crunchbase, Hodlnaut has more than $500 million in assets under management. The company says it is working with a Singaporean law firm to develop a new strategy and will provide an update to clients on August 19.
“This difficult decision was made for us to focus on stabilizing our liquidity and preserving assets, while working to find the best way to protect the long-term interests of our users,” says Hodlnaut. “We are actively working on the recovery plan on which we hope to provide updates and details as soon as possible.”