Singapore-based crypto lender Hodlnaut notified its users on Monday that all the transactions on its platform have been paused. This includes withdrawals, deposits, and swaps.
The lender confirmed the news on its social media, adding that the next update will be made on August 19.
At the same time, the company also decided not to pursue a license with the Monetary Authority of Singapore (MAS). The lender submitted the application and received initial clearance to start offering “digital token payment services.” These moves come just weeks after it was confirmed that the company had exposure of $187 million to the collapse of stablecoin Terra.
“We are actively working on the recovery plan that we hope to provide updates and details on as soon as permissible,” said Hodlnaut in a statement released on its official website. “We are consulting with Damodara Ong LLC (Singapore-based law firm) on the feasibility and timelines of our intended execution plan and are strategizing our recovery plan with our users’ best interests in mind.”
Hodlnaut joins the long list of struggling crypto lending businesses that had to put a halt on their operations due to challenging conditions in the crypto market. Several of them, including U.S.-based Celsius Network and Voyager Digital, filed for bankruptcy in recent weeks.