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Singapore-based crypto lending platform Hodlnaut sent the dreaded “we are pausing customer withdrawals” email on Monday evening, following in the wake of numerous staking platforms that have already bitten the dust.
Hodlnaut said it would be “halting withdrawals, token swaps and deposits with immediate effect,” citing “recent market conditions.” It has also withdrawn its application for a digital payment token (DPT) license from the Monetary Authority of Singapore, the statement said.
This is a story we’ve seen at various platforms this crypto winter – Celsius, Valud, ZipMex, and more – and until now, none of the platforms that have paused customer withdrawals have made a comeback.
In June, Blockhead sounded the alarm to readers about the risks surrounding the platform.
Read more: Hodlnaut is Too Flawed to HODL – Here’s Why
Hodlnaut, which claimed to have US$500 million AUM at the start of 2022, is believed to have suffered severe losses due to the 3AC fallout, according to Dirty Bubble Media, which alleges that Hodlnaut used clients’ money to deposit into Anchor to earn 19.5% yield whilst returning their users 8-13%.
Furthermore, Hodlanut is believed to be one of the largest liquidity providers of UST to UST 3crv pool on Curve, as well as being one of the biggest depositors in the Anchor protocol.
Twitter crypto investigator FatManTerra revealed layoffs at the platform in June, which were denied by founder JT, though Blockhead sources confirmed the shrinking headcount there.
Hodlnaut said it would provide the next update on August 19. But we all know how this is going to play out.