Hodlnaut in the middle of a crash – Crypto platform stops withdrawing funds from its users
Deposits, withdrawals and locked swap – One more. The Singapore-based crypto lending platform announced in a statement that it is suspending all deposits, withdrawals and trades. Hodlnaut seems ready to add its name to the (too) long list of centralized financial services to prove insolvent. Each new bankruptcy drives another nail into the coffin that regulators have secured for cryptocurrencies.
Celsius syndrome: it smells like fir
The company released a statement on its website to inform its users and apologize to users. All functions are now frozen until further notice. The management team came to take over ” this difficult decision due to recent market conditions and that it was taken in order to ” stabilize liquidity and preserve assets“.
Added crypto service provider Celsius, Voyager and Zipmex more recently, among insolvents. The team says it is actively working on a recovery plan that it hopes to communicate as soon as possible.
Hodlnaut has already informed the MAS (Monetary Authority of Singapore) of its desire to return its commercial license. This means that the platform no longer offers regulated digital payment services and all borrowing and lending activities cease.
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Hodlnaut, in all the right moves
While the importance of risk management with one’s own capital is regularly reminded, platforms like Hodlnaut should be much more careful with the capital of others. Their clients.
As reported by @etheraltog on Twitter, Hodlnaut has transacted on the DeFi Curve Finance platform with several wallets. Probably by user funds. This screenshot is very interesting because it shows transactions in stETH, UST and MIM.
ETH invested by Lido Finance (stETH) as well as two stablecoins have seen a drop in value this year. Depeg is the loss of parity of an asset with the asset it is supposed to represent. The outcome was fatal for MIM and Terra Luna’s UST.
More details are expected in the coming days, but the pattern already looks sadly familiar. Inconsistent management of others’ funds added to ” recent market conditions give this situation. Especially since it arms the arguments for pro-regulation of crypto-assets.
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