Hodlnaut, a crypto lender with operations in Asia, has announced that it has suspended withdrawals, making it the most recent business in the digital-assets sector to be impacted by a string of defaults. The company cited current market conditions as the reason for the action and stated that it has to concentrate on stabilizing its liquidity and protecting its assets. According to a statement released today, the company has also halted deposits and token swaps. In response, it is collaborating with the Singaporean law firm Damodara Ong LLC on a recovery strategy.
When it first opened its doors in 2019, the company gave investors the opportunity to earn interest on their cryptocurrency holdings by lending out their tokens. It is one of the numerous crypto lenders that have incurred losses as a result of the current collapse in prices of digital assets, which has wiped off almost $2 trillion worth of value from the industry.
According to the platform:
“Halting withdrawals and token swaps was a necessary step for us to stabilize our liquidity and give us the time to work closely with our legal advisors to come up with the best possible restructuring and recovery plan for our users.”
Hodlnaut On Brink Of Default Amid Crypto Market Turbulence
Additionally, Hodlnaut has aborted the process of applying for a license with the Monetary Authority of Singapore. Without this application, token swaps, a regulated service, cannot be supported. Hodlnaut has indicated that it will keep disbursing interest payments to its customers until it receives a further notification. Due to current market conditions, Hodlnaut will immediately suspend withdrawals, token swaps, and deposits for all customers. The platform has made this painful choice.
Users have been informed by Hodlnaut that this challenging decision was made in order for the platform to concentrate on stabilizing its liquidity and protecting its assets, while the company works to determine the most effective method to safeguard the long-term interests of Hodlnaut users. Additionally, Hodlnaut apologized for the trouble this has caused its users. Hodlnaut told its users that, due to the aforementioned factors, it has since notified the MAS of its plan to withdraw its license application.
Hodlnaut no longer offers regulated digital payment token (DPT) services, i.e. its token swap functionality. Without a doubt, Hodlnaut will likewise halt all loan and borrowing services. Hodlnaut is diligently campaigning on the recovery plan and will offer updates and further information as soon as it is legal to do so. The platform is working with Damodara Ong LLC regarding the viability and timeliness of its anticipated execution plan and is strategizing its rescue plan with the greatest advantage of Hodlnaut users in mind.
Hodlnaut Urges Users To Beware Of Scams
Hodlnaut notified its users that it intends to respond to all user inquiries as they are received and will therefore prioritize email ([email protected]), Twitter (@hodlnautdotcom), and Hodlnaut Telegram (https://t.me/hodlnaut) as its primary communication methods. Hodlnaut will disable all other social media sites in order to streamline its efforts and provide timely, reliable information.
The platform urged users to remain attentive and take note of the above-mentioned Hodlnaut communication channels. If people are approached by an account purporting to be affiliated with Hodlnaut, they can presume it is not Hodlnaut, as Hodlnaut does not use other channels for communicating with users.
Users can contact Hodlnaut at [email protected] with any questions, and the platform will react shortly. Hodlnaut requested users’ understanding and patience if a prolonged response is received. Hodlnaut expressed gratitude to all of its users, past, and present, for their ongoing support over the previous three years. Hodlnaut wishes the situation were different, but it is committed to finding the best possible resolution for its users and will keep them updated at every stage. The next update to Hodlnaut will come on Friday, August 19, 2022.
