Another Crypto Platform Has Suspended Withdrawals - Company Citing Market Conditions

On August 8, crypto exchange and lending platform Hodlnaut announced that the company has suspended withdrawals, token swaps and deposits. Hodlnaut joins a host of crypto firms that have frozen withdrawals over the past three months, leaving customers with little hope of ever seeing their funds again. Long before Hodlnaut's hiatus, a whistleblower called Fatman warned the people of Terra about Hodlnaut's alleged problems.

Another crypto platform has suspended operations citing recent market conditions

Another cryptocurrency lending platform, Hodlnaut, has revealed that it has suspended all operations including withdrawals, token swaps and deposits. "Dear users, we regret to inform you that due to recent market conditions, we are immediately halting withdrawals, token swaps and deposits," the company said on Monday on Twitter. We have also withdrawn our MAS license application.

Of course, the crypto community was not happy with Hodlnaut's decision and either criticized the platform or she was joking from the platform and its customers. In a blog post the crypto company shared on Twitter, it says the company is focused on stabilizing "liquidity and asset preservation."

“We are actively working on a recovery plan, which we hope to provide updates and details as soon as possible. We are consulting with Damodara Ong LLC on the feasibility and schedule of our intended implementation plan and are preparing a recovery plan with the best interests of our users in mind.”

He warned against freezing withdrawals on Hodlnaut Fatman and then emphasized that "these websites are not as trustworthy as you might think". Fatman explained as Hodlnaut added UST and LUNA (now called Classic) with high annual percentage returns (APY).

Accepting deposits "under false pretenses"

"Hodlnaut has now frozen all withdrawals," said Fatman. "I sincerely hope that everything is fine there. Fatman added that he was allegedly threatened with a lawsuit by the Hodlnaut team when he posted a Twitter thread about the company in late June.

“Juntao Zhu said he would file lawsuits against me because of my Twitter thread. These lawsuits never came and never will. JT [and] Chang Teck Goh have criminally accepted further advances under false pretenses and deserve jail time,” insisted on your Fatman.

Further said, that he sent an email to the Monetary Authority of Singapore (MAS) in June. He noted that he did not think it would be a good idea for "Singaporean authorities to give Hodlnaut any semblance of legitimacy". However, no one from MAS responded to the email and said he felt bad because he might not have pushed hard enough.

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All content in this article is for informational purposes only and does not in any way serve as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.