Holdnaut freezes withdrawals

A Singapore-based cryptocurrency lender and borrower Holdnaut has become the latest company from the sector to freeze withdrawals, swaps and deposits for its consumers.

Holdnaut said on Monday that the situation had become necessary because of the current shocks experienced in the cryptocurrency industry.

The company is also withdrawing its license application with the Monetary Authority of Singapore (MAS), suspecting that its current predicament will render it impossible for it to secure a permit, even though it received a principal approval back in March.

The company is the latest to suffer harshly from the crash of Luna and TerraUSD tokens which cost investors billions and precipitated the demise of ambitious but often over-reaching platforms that ended up burning through their cash supplies to the point they were unable to muster the liquidity to pay panicking investors who had decided to withdraw en masse.

Many high-profile cryptocurrency lenders have already suffered a similar fate with Celsius and Three Arrows Capital tumbling from their pedestals.

Holdnaut is linked to Celsius and is one of the platform’s institutional clients, a court filing has revealed. The recent spate of crypto crashes has had a bearing on the companies that are operating in the sector up close.

Vauld, another Singapore-based cryptocurrency lending platform, was also criticized for suspending withdrawals in July, but has been offered a lifeline since.

Zipmex, yet another crypto exchange, also had to suspend withdrawals, with most of these companies battling liquidity shortages as investors rushed to cash out hoping to cut their losses.

If you are not part of the crypto lending consumer base, then you may spend your cryptocurrencies recreationally at 1xBit, Bitcasino or FortuneJack.

Source

Updated: 08/09/2022 — 12:00