Crypto lender Hodlnaut suspends withdrawals due to liquidity pressures

Hodlnaut, a Singapore-based crypto lending platform announces the suspension of its financial services, withdrawals, deposits, and swaps.

The company announced they are suffering from a loss in the crypto market and will also withdraw the license application for token payment services submitted to the Monetary Authority of Singapore (MAS).

Hodlnaut becomes part of the many crypto firms that have halted their services for the crypto community, causing a big risk to customers’ funds stored on their platforms. The DeFi industry seems to be still struggling with the long bear market.

The crypto lender’s shared that the company would focus on “stabilizing our liquidity and preserving assets.”

“We are actively working on the recovery plan that we hope to provide updates and details on as soon as permissible. We are consulting with Damodara Ong LLC on the feasibility and timelines of our intended execution plan and are strategising our recovery plan with our users’ best interests in mind,”  the official press release reads.

According to Reuters, Hodlnaut was one of the institutional customers of Celsius based on its court filing, which might’ve influenced the crypto platform’s decision to halt services.

Binance CEO, CZ says, Hodlnaut won’t be the last one to fall. Hinting at a possible suspension from other crypto firms in the coming months. He advised people to choose sustainable platforms for lending or borrowing crypto funds.

Hodlnaut will give an update on the situation on August 19, 2022.