Crypto platform Hodlnaut temporarily suspends withdrawals

Representatives of the company referred to the need to stabilize liquidity and preserve user assets

08.08.2022 - 14:55

384

1 min

What’s new? Crypto platform Hodlnaut has suspended withdrawals and deposits, token swaps, as well as withdrawn its license application from the Monetary Authority of Singapore (MAS). According to the platform, the freeze of funds is necessary to stabilize liquidity and preserve assets. The company announced this on Twitter.

Link to the tweet

What else did Hodlnaut say? Representatives of the platform said in a statement to users that they are actively working on a recovery plan and will provide details as soon as possible. The company is consulting with lawyers at Damodara Ong about the feasibility and timing of the plan.

Hodlnaut is a Singapore-based cryptocurrency lending and borrowing platform founded by Juntao Zhu and Simon Lee in April 2019. It has a mobile app for iOS and Android. In May 2021, the number of users reached 5 000 and there were $243 million in assets under management.

In July, crypto platform Vauld suspended withdrawal, trading and escrow functions and hired consultants to restructure. The company cited the negative impact of market volatility and its partners' financial difficulties. In total, Vauld owed $363 million to retail investors. Cryptocurrency lender Nexo later announced its purchase of Vauld. The parties signed a tentative term sheet with a plan to acquire up to 100% of the shares.

Author: