Singaporean crypto lender Hodlnaut is the latest digital asset company to announce that it is freezing withdrawals “due to recent market conditions.”
In an announcement on Holdnaut’s website, the firm says it took the measure “to focus on stabilizing our liquidity and preserving assets” while consulting with local law firm Damodara Ong LLC on the “feasibility and timelines” of its restructuring and recovery plan.
Earlier this year, the lender received In-Principle Approval (IPA) from the MAS “to provide digital payment token (DPT) services as a Major Payment Institution.”
Holdnaut has now reportedly informed Singapore’s Monetary Authority (MAS) that it is withdrawing its license application.
As a result, Hodlnaut is no longer providing its Token Swap feature.
The company says its next update on the matter will be on August 19, 2022, but it is unable to provide a definite date for when withdrawals will be resumed.
Crypto winter freezes withdrawals
Since Terra’s collapse back in May, the industry has been hit with reports of widespread liquidity troubles. Crypto hedge fund Three Arrows Capital recently applied for bankruptcy and several lenders have also needed bailouts.
Insolvent lenders often halt customer withdrawals to preempt potential bank runs. Crypto exchange Zipmex, which recently filed for protection from bankruptcy, is the latest example—although it recently resumed withdrawals last week for SOL, XRP, and ADA.
Vauld and Celsius have resorted to the same measure too, with the latter firm filing for bankruptcy not long after.
It would appear that the industry is not out of crypto winter yet.