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Cryptocurrency platform Hodlnaut suspends withdrawals and deposits

Cryptocurrency platform Hodlnaut suspends withdrawals and deposits

Cryptocurrency lending and trading platform Hodlnaut is the latest company to suspend withdrawals and deposits, blaming market conditions and lack of liquidity for the situation, Hodlnaut announced today.

Bitcoin, Litecoin, Criptomoeda, Finança

Dear users, we regret to inform you that we will stop withdrawals, exchanges of ‘tokens’ and deposits immediately due to recent market conditions”, says the platform in a statement, quoted by the Bloomberg agency.

He continues: “We have also withdrawn the license request from the Monetary Authority of Singapore (MAS)”, the entity that licenses and regulates financial institutions in the fund management, capital markets, banking, insurance and payments sectors, among others.

Furthermore, Hodlnaut explains “this difficult decision” with the need to focus on stabilizing the platform’s liquidity situation and preserving assets.

“We are actively working on the recovery plan, hoping to provide updates and details as soon as possible.”

Hodlnaut also reported that it has withdrawn its regulatory license application in Singapore and, as a result, will not be able to offer “any further facilities” for token exchange.

The cryptocurrency platform also indicated that it would suspend all of its social media accounts, except for Twitter and Telegram.

However, Juntao Zhu founder of Hodlnaut became a private user on the Twitter network.

The cryptocurrency lending crisis began with the collapse of the Terra ecosystem, followed by the bankruptcy of leading high-risk cryptocurrency fund Three Arrow Capital (3AC).

The continued market turmoil has created a domino effect for cryptocurrency lenders due to exposure to the high-risk fund and the Terra ecosystem.

Voyager Digital, Celsius and Blockchain.com were some of the major cryptocurrency companies that suspended their services.

Hodlnaut has nevertheless managed to avoid any exposure to 3AC, although some reports allege that the company has not been transparent regarding its investments in the defunct algorithmic ‘stablecoin’ Terra.