This is another huge blow to everyday crypto investors, and figures from Hodlnaut suggest that the firm has $500 million in digital assets under management.
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Hodlnaut has become the latest crypto lender to announce it is halting withdrawals, swaps and deposits with immediate effect.
In a statement that'll sound all too familiar by now, the drastic move was blamed on "recent market conditions" — and customers were told:
"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."
Hodlnaut has also withdrawn its license operation with the Monetary Authority of Singapore, and has ceased all borrowing and lending services.
Suggesting that a black hole in its finances has now emerged, executives say they're now working on a recovery plan "with users' best interests in mind" — and are currently consulting on the feasibility and timelines of these proposals.
Another update is not expected until August 19, and Hodlnaut has warned the process of reuniting users with their funds "will not be a short process." The crypto space is already seeing this with Celsius Network, where customers have been locked out of their crypto for almost two months.
Hodlnaut says customers are still going to earn interest on their funds every Monday until further notice — but other lenders in this situation, such as Voyager Digital, have previously warned that users may not get their crypto back in full. As a result, this could end up being something of a hollow gesture.
This is another huge blow to everyday crypto investors, and figures from Hodlnaut suggest that the firm has $500 million in digital assets under management.
