Singapore-based crypto platform Hodlnaut halts withdrawals, deposits, and token swaps, citing market volatility, and joins the lengthy listing of crypto platforms going bust.
Hodlnaut stated in a press release “we’ve since knowledgeable the MAS (Financial Authority of Singapore) of our intention to withdraw our licence utility. Hodlnaut is subsequently not offering regulated digital cost token (DPT) providers, i.e., our token swap function. For the avoidance of doubt, Hodlnaut may even stop all borrowing and lending providers.” Hodlnaut’s withdrawal pause follows corporations 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 the most effective pursuits of its customers. It’s anticipated to present an replace on its restoration plan on August 19.
Hodlnaut’s LinkedIn web page nonetheless reveals $500 million of property 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.
In keeping with the corporate, the person 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 customers in regards to the platform, emphasising that “these web sites will not be as reliable as chances are you’ll assume.”
Fatman described how Hodlnaut included Terra’s UST and LUNA (previously often called traditional 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 briefly banned LUNA and UST trades.
They bought some UST as little as $0.40, degen shorted by means of bETH cross-margining, had large, dangerous shorts on exchanges in the most effective case state of affairs, and in a hilarious transfer of courageous defiance, they even re-entered Anchor after the collapse (small dimension). 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 present Hodlnaut any semblance of legitimacy”