Defi News- The platform’s decision was attributed to current market circumstances.
- Hodlnaut apparently had $187 million in TerraUSD [UST].
Aside from Terra’s demise, a number of other crypto lenders filed for bankruptcy after suspending withdrawals. Cryptocurrency lenders like Three Arrows Capital and others have recently gone under, but a Singapore crypto firm called Hodlnaut has just published an announcement.
Yet Another Repeats the Same
Hodlnaut published a blog post earlier today detailing the suspension of withdrawals, token swaps, and deposits. This is meant to happen right away. The platform’s decision was attributed to current market circumstances, the same as those of its competitors.
Hodlnaut further stated:
“We understand that this is disappointing news and understand its impact on you. We would like to reassure you that this difficult decision was taken for us to focus on stabilizing our liquidity and preserving assets, while we work to find the best way to protect our users’ long-term interests. We sincerely apologize for the inconvenience that this has caused you.”
Noteworthy is that Hodlnaut apparently had $187 million in TerraUSD [UST], which is now TerraClassicUSD [USTC]. As a result, many believe that its current action is in response to Terra’s shocking demise.
The Monetary Authority of Singapore [MAS] gave the platform an in-principle license in March of this year. Hodlnaut, on the other hand, confirmed that the company had withdrawn its licensing application in its most recent blog post. Consequently, the company is not a regulated digital payment token [DPT] service provider.
Besides this, the platform said that a recovery strategy was in place. A Singapore legal firm, Damodara Ong LLC, is assisting Hodlnaut with the plan’s implementation, viability, and deadlines. The MAS seemed to be more active than other authorities in the wake of the collapse of many crypto platforms.
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Source: https://thenewscrypto.com/crypto-lending-firm-hodlnaut-halts-withdrawals-and-services/