Holdnaut added that it has withdrawn its license utility from the Financial Authority of Singapore (MAS).
Pricey customers, we remorse to tell you that we’ll be halting withdrawals, token swaps and deposits instantly because of latest market situations. Now we have additionally withdrawn our MAS licence utility. Right here is our full assertion https://t.co/5KfHUBzWsn Our subsequent replace can be on 19 Aug.
— Hodlnaut (@hodlnautdotcom) August 8, 2022
With this transfer, Hodlnaut might not provide digital cost token (DPT) companies within the Asian area.
Within the meantime, the struggling platform stated it’s working carefully with Singaporean legislation agency Damodara Ong LLC on a restoration technique. It’s anticipated to subject the following public replace on Friday, August 19, 2022.
The destiny of Hodlnaut customers
Within the announcement, Hodlnaut said that the resumption of withdrawal and token swap will take some time because it must finalize with its stakeholders on the restoration technique. With the suspension of withdrawal requests, customers have been suggested to chorus from making deposits because the funds is not going to be credited to their account.
Customers affected by the event have taken to Twitter to precise their disappointment with CeFi platforms.
Final rekt lesson for CeFi customers:
“Not your keys, not your crypto.”
— cryptofunded (@FundedCrypto) August 8, 2022
Hodlnaut took so lengthy to return out clear
On July 18 TechinAsia printed a report on Hodlnaut’s potential publicity to the Terra collapse. It confirmed that crypto intelligence agency Nansen recognized two wallets linked to Hodlnaut, which had been used to maneuver massive quantities of UST into Terra’s Anchor protocol earlier than the collapse.
Hodlnaut CEO Juntao Zhu denied the declare saying the platform didn’t take losses on Terra’s UST.
Following the report, Nansen CEO Alex Svanevik known as out the lending platform to be extra clear to customers on the state of their funds.
I might anticipate extra transparency from @jt_hodlnaut on who this mysterious counterparty is.
The counterparty was going degen with MIM and UST whereas managing buyer funds for @hodlnautdotcom.
Personally suppose customers are owed rather more transparency right here.
— Alex Svanevik🐧 (@ASvanevik) July 19, 2022