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Crypto lender Hodlnaut halts withdrawals, ends token swap feature

·1 min read

Singapore-based crypto lender Hodlnaut freezed withdrawals as well as ended its token swapping feature on Monday, just as the market is showing signs of recovery from the so-called crypto winter.

See related article: Zipmex resumes withdrawals of certain tokens in phased manner

Fast facts

  • Hodlnaut said the withdrawal freeze is to “focus on stabilizing our liquidity and preserving assets” and for “necessary breathing room to explore potential restructuring options and recovery plans with our legal advisors.”

  • Hodlnaut said it has canceled its payment license application for providing digital payment tokens service in Singapore.

  • Hodlnaut said its next update will come on Aug. 19.

  • Hodlnaut has not responded to Forkast’s inquiries about its restructuring plans as of press time.

  • Hodlnaut said in February that it had more than US$100 million in customer funds among more than 1,000 users, up from US$1 million a year earlier, but crypto influencer FatMan on Twitter said Hodlnaut may have lost millions in the LUNA/UST collapse and tried to hide it.

  • The crypto market shows signs of getting warmer as a CoinShares report says crypto investments totaled US$474 million in July, mostly reversing a US$481 million outflow in June.

See related article: Singapore’s central bank says cryptocurrencies have ‘no fundamental value’