Crypto Lender Hodlnaut Pauses Withdrawals — Company Cites Market Conditions, Despite Recent Crypto Rally – Bitcoin News

On August 8, the crypto trade and lending platform Hodlnaut introduced that the corporate has paused withdrawals, token swaps, and deposits. Hodlnaut joins a slew of crypto companies which have frozen withdrawals over the past three months, leaving prospects little hope that they’ll see their funds once more. Properly earlier than Hodlnaut’s withdrawal pause, the Terra whistleblower referred to as Fatman warned folks about Hodlnaut’s alleged points.

One other Crypto Platform Freezes Operations Citing Current Market Circumstances

One other crypto trade and lending platform, referred to as Hodlnaut, has revealed it has suspended all operations together with withdrawals, token swaps, and deposits. “Expensive customers, we remorse to tell you that we are going to be halting withdrawals, token swaps, and deposits instantly because of current market circumstances,” the corporate tweeted on Monday. We now have additionally withdrawn our MAS license utility. Right here is our full assertion — Our subsequent replace can be on [August 19],” Hodlnaut added.

After all, the crypto group was not happy with Hodlnaut’s determination and both criticized the platform or made fun of the enterprise and its prospects. The “not your keys, not your cash” adage is prominent in Hodlnaut’s Twitter announcement thread. Within the weblog put up the crypto firm shared on Twitter it notes that the corporate is targeted on stabilizing “liquidity and preserving property.”

“We’re actively engaged on the restoration plan that we hope to supply updates and particulars on as quickly as permissible,” Hodlnaut’s weblog put up particulars. “We’re consulting with Damodara Ong LLC on the feasibility and timelines of our meant execution plan and are strategising our restoration plan with our customers’ finest pursuits in thoughts.” Hodlnaut’s withdrawal pause follows firms like Celsius, Voyager Digital, Babel Finance, and Vauld freezing withdrawals as effectively.

Previous to Hodlnaut freezing withdrawals, the Terra whistleblower Fatman warned folks concerning the platform and harassed on the time that “these web sites are usually not as reliable as you could suppose.” Fatman explained how Hodlnaut added Terra’s UST and LUNA (now known as traditional cash) with excessive annual proportion yields (APY). Fatman additional detailed that Hodlnaut advised the general public that it had no publicity to Anchor. When Terra collapsed, the platform quickly suspended LUNA and UST swaps on Could 9, and two days later Hodlnaut wrote:

Hodlnaut is NOT all-in on UST as one explicit hearsay on Reddit has talked about. This can be a false declare.

Crypto Whistleblower Accuses Hodlnaut Workforce of Taking in Deposits ‘Underneath False Pretenses’

Following the withdrawal pause on August 8, Fatman mentioned that tweeting out the warning to folks was value it in the long run. “Hodlnaut has now frozen all withdrawals,” Fatman mentioned. “Genuinely hope the whole lot is okay there. If there are main points, a number of good folks will go beneath. Received tons of hate on my thread from Hodlnaut followers, but additionally acquired messages from grateful prospects who withdrew, so it was 100% value it.” Fatman added that he was allegedly threatened by lawsuits from the Hodlnaut workforce when he posted the Twitter thread concerning the agency on the finish of June.

“Hodlnaut has taken down their workforce web page — It’s not that simple. Juntao Zhu acknowledged he could be submitting lawsuits towards me for my Twitter thread. These lawsuits by no means got here and by no means will. JT [and] Chang Teck Goh criminally took in additional deposits beneath false pretenses and deserve jail,” Fatman insisted.

The whistleblower additionally said he despatched an e-mail to the Financial Authority of Singapore (MAS) in June as effectively. He famous that he didn’t suppose it was a good suggestion for “Singaporean authorities to present Hodlnaut any semblance of legitimacy.” Nevertheless, no person from MAS responded to the whistleblower’s e-mail and mentioned he felt dangerous for presumably not pushing onerous sufficient earlier than the withdrawal pause passed off. Fatman has develop into a very fashionable particular person within the crypto group and his social media presence has managed to realize him near 100,000 followers.

Tags on this story
Chang Teck Goh, Damodara Ong, Fatman, frozen withdrawals, Hodlnaut, Hodlnaut purchasers, Hodlnaut prospects, Hodlnaut workforce, Hodlnaut withdrawals, Juntao Zhu, MAS, Financial Authority of Singapore, operations pause, Pause withdrawals, restoration plan, Singapore

What do you consider Hodlnaut’s withdrawal pause? What do you consider Fatman’s accusations? Tell us what you consider this topic within the feedback part beneath.

Jamie Redman

Jamie Redman is the Information Lead at Information and a monetary tech journalist dwelling in Florida. Redman has been an energetic member of the cryptocurrency group since 2011. He has a ardour for Bitcoin, open-source code, and decentralized purposes. Since September 2015, Redman has written greater than 5,700 articles for Information concerning the disruptive protocols rising right now.

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