In what seems to be a liquidity problem, the crypto lending site Hodlnaut has suspended withdrawals. The company cited current market circumstances as the reason for the decision and said it must “concentrate on stabilising our liquidity and protecting our assets.”
According to a statement released today, the platform has also halted deposits and token exchanges. In response, it collaborates with the Singaporean legal firm Damodara Ong LLC on a recovery strategy.
“Stopping withdrawals and token swaps was vital for us to stabilise our liquidity and allow us time to work closely with our legal experts to develop the best possible restructuring and recovery plan for our customers,” the site said.
Additionally, Hodlnaut has withdrawn its application for a licence with the Monetary Authority of Singapore. Hodlnaut said that, until further notice, it would continue to pay interest to its clients.
The site indicated that it would shut down its social media networks except for a few official channels. The site has erased its YouTube account, and the account of its inventor, Juntao Zhu, has been made private on Twitter.
Additionally, the Hodlnaut website has deleted the team page, which formerly featured the company’s two founders, five employees, and one adviser. A copy of the page is accessible through the Wayback Machine.
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