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

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

On August 8, the crypto speech and lending level Hodlnaut announced that the institution has paused withdrawals, token swaps, and deposits. Hodlnaut joins a slew of crypto firms that person frozen withdrawals during the past 3 months, leaving customers small anticipation that they volition spot their funds again. Well earlier Hodlnaut’s withdrawal pause, the Terra whistleblower called Fatman warned radical astir Hodlnaut’s alleged issues.

Another Crypto Platform Freezes Operations Citing Recent Market Conditions

Another crypto speech and lending platform, called Hodlnaut, has revealed it has suspended each operations including withdrawals, token swaps, and deposits. “Dear users, we regret to pass you that we volition beryllium halting withdrawals, token swaps, and deposits instantly owed to caller marketplace conditions,” the institution tweeted connected Monday. We person besides withdrawn our MAS licence application. Here is our afloat connection — Our adjacent update volition beryllium connected [August 19],” Hodlnaut added.

Of course, the crypto assemblage was not pleased with Hodlnaut’s determination and either criticized the level oregon made fun of the concern and its customers. The “not your keys, not your coins” adage is prominent successful Hodlnaut’s Twitter announcement thread. In the blog station the crypto institution shared connected Twitter it notes that the institution is focused connected stabilizing “liquidity and preserving assets.”

“We are actively moving connected the betterment program that we anticipation to supply updates and details connected arsenic soon arsenic permissible,” Hodlnaut’s blog post details. “We are consulting with Damodara Ong LLC connected the feasibility and timelines of our intended execution program and are strategising our betterment program with our users’ champion interests successful mind.” Hodlnaut’s withdrawal intermission follows companies similar Celsius, Voyager Digital, Babel Finance, and Vauld freezing withdrawals arsenic well.

Prior to Hodlnaut freezing withdrawals, the Terra whistleblower Fatman warned radical astir the level and stressed astatine the clip that “these websites are not arsenic trustworthy arsenic you whitethorn think.” Fatman explained however Hodlnaut added Terra’s UST and LUNA (now referred to arsenic classical coins) with precocious yearly percent yields (APY). Fatman further elaborate that Hodlnaut told the nationalist that it had nary vulnerability to Anchor. When Terra collapsed, the level temporarily suspended LUNA and UST swaps connected May 9, and 2 days aboriginal Hodlnaut wrote:

Hodlnaut is NOT all-in connected UST arsenic 1 peculiar rumour connected Reddit has mentioned. This is simply a mendacious claim.

Crypto Whistleblower Accuses Hodlnaut Team of Taking successful Deposits ‘Under False Pretenses’

Following the withdrawal intermission connected August 8, Fatman said that tweeting retired the informing to radical was worthy it successful the end. “Hodlnaut has present frozen each withdrawals,” Fatman said. “Genuinely anticipation everything is good there. If determination are large issues, a batch of bully radical volition spell under. Got tons of hatred connected my thread from Hodlnaut fans, but besides got messages from grateful customers who withdrew, truthful it was 100% worthy it.” Fatman added that helium was allegedly threatened by lawsuits from the Hodlnaut squad erstwhile helium posted the Twitter thread astir the steadfast astatine the extremity of June.

“Hodlnaut has taken down their squad leafage — It’s not that easy. Juntao Zhu stated helium would beryllium filing lawsuits against maine for my Twitter thread. These lawsuits ne'er came and ne'er will. JT [and] Chang Teck Goh criminally took successful much deposits nether mendacious pretenses and merit jail,” Fatman insisted.

The whistleblower besides said helium sent an email to the Monetary Authority of Singapore (MAS) successful June arsenic well. He noted that helium didn’t deliberation it was a bully thought for “Singaporean authorities to springiness Hodlnaut immoderate semblance of legitimacy.” However, cipher from MAS responded to the whistleblower’s email and said helium felt atrocious for perchance not pushing hard capable earlier the withdrawal intermission took place. Fatman has go a precise fashionable idiosyncratic successful the crypto assemblage and his societal media beingness has managed to summation him adjacent to 100,000 followers.

What bash you deliberation astir Hodlnaut’s withdrawal pause? What bash you deliberation astir Fatman’s accusations? Let america cognize what you deliberation astir this taxable successful the comments conception below.

Jamie Redman

Jamie Redman is the News Lead astatine News and a fiscal tech writer surviving successful Florida. Redman has been an progressive subordinate of the cryptocurrency assemblage since 2011. He has a passionateness for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written much than 5,700 articles for News astir the disruptive protocols emerging today.

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