Singapore-based crypto platform halts withdrawals, deposits, and token swaps, citing market volatility, and joins the lengthy listing of crypto platforms going bust.
Hodlnaut stated in an announcement “now we have since knowledgeable the MAS (Financial Authority of Singapore) of our intention to withdraw our licence utility. Hodlnaut is subsequently now not offering regulated digital cost token (DPT) providers, i.e., our token swap characteristic. For the avoidance of doubt, Hodlnaut can even stop all borrowing and lending providers.” Hodlnaut’s withdrawal pause follows firms like Celsius, Voyager Digital, Babel Finance, and Vauld freezing withdrawals.
Because the announcement, Hodlnaut CEO Juntao Zhu has turned his Twitter account personal. The corporate additionally has disabled its Fb, Discord, and Reddit pages. The corporate stated it’s consulting with Damodara Ong LLC, and dealing on an execution and restoration plan for one of the best pursuits of its customers. It’s anticipated to offer an replace on its restoration plan on August 19.
Hodlnaut’s LinkedIn web page nonetheless exhibits $500 million of belongings below administration, and the corporate has assured prospects that it’s going to nonetheless present curiosity on their deposits.
In a 2021 blog post, the agency claimed that it built-in “iTrust insure” into its platform, giving customers the chance entry to Nexus Mutual custody cowl.
Based on the corporate, the consumer who bought the custody insurance coverage will obtain the equal of their funds in Ethereum (ETH) or DAI tokens if the withdrawals from the custodian wallets are halted for greater than 90 days.
Hodlnaut’s issues began with the collapse of TeraLuna crypto and the Singapore-based cryptocurrency hedge fund Three Arrow Capital.
Earlier than Hodlnaut froze withdrawals, Terra whistleblower Fatman warned shoppers in regards to the platform, emphasising that “these web sites will not be as reliable as you might assume.”
Fatman described how Hodlnaut included Terra’s UST and LUNA (previously often known as basic cash) with excessive annual proportion yields (APY).
The whistleblower defined that Hodlnaut assured the general public it had no publicity to Anchor. However when Terra collapsed on Might 9, the platform quickly banned LUNA and UST trades.
They offered some UST as little as $0.40, degen shorted via bETH cross-margining, had big, dangerous shorts on exchanges in one of the best case state of affairs, and in a hilarious transfer of courageous defiance, they even re-entered Anchor after the collapse (small measurement). https://t.co/yfbTET4U4n (15/25)
— FatMan (@FatManTerra) June 26, 2022
The whistleblower additionally despatched an e mail to the Financial Authority of Singapore (MAS) in June. He stated: “I did not consider it was clever for Singaporean authorities to offer Hodlnaut any semblance of legitimacy”