Crypto lending platform Hodlnaut announced freezing withdrawals, deposits, as well as token swaps, citing “difficult market conditions” amid a swathe of similar mishaps.
As per the official announcement, Hodlnaut informed the Monetary Authority of Singapore (MAS) of its intention to withdraw the license application in the city-state.
The release read,
“Hodlnaut is therefore no longer providing regulated digital payment token (DPT) services, ie our token swap feature. For the avoidance of doubt, Hodlnaut will also cease all borrowing and lending services.”
Founded in 2019, Hodlenaut joins the list of other lenders such as Babel and Vauld that announced freezing accounts. Celsius Network and Voyager Digital, on the other hand, have declared bankruptcy.
The platform said it is actively working on the recovery plan and is currently consulting with Damodara Ong LLC on the feasibility and timelines of its intended execution plan.
Hodlnaut also noted that it would turn off all of its social media accounts except for the official Twitter and Telegram channels.
Furthermore, the company’s founder Juntao Zhu has gone private on Twitter. The company will provide the next update on August 19.
The domino effect of Terra UST’s deathly spiral has been disastrous for several crypto lenders.
Hodlnaut, however, has not mentioned that the algorithmic stablecoin’s depeg triggered this event.
But popular whistleblower, FatMan, indicated earlier that the platform may have had millions of dollars worth of exposure to the Terra collapse.