Cryptocurrency lender Hodlnot has announced the freezing of withdrawals, token swaps and deposits amid the harsh crypto winter.
The company has also notified the Monetary Authority of Singapore (MAS) to withdraw its license application, which is no longer providing regulated digital payment token (DPT) services or token swaps.
“To all users, we regret to inform you that we will be suspending withdrawals, token swaps and deposits with immediate effect. We have reached this difficult decision due to recent market conditions,” the company said in a statement.
“For the avoidance of doubt, HodlNote will also discontinue all lending and lending services,” it added.
According to data from Crunchbase, Hodlnot has more than $500 million in assets under management.
The company said it is “actively working” on a recovery plan.
“Our next update will be on Friday, 19 August 2022,” it informed.
The Terra USD crash in May caused a ripple effect in the global crypto market and since then, crypto hedge funds such as Three Arrows Capital, Voyager Digital, Celsius Network collapsed, while others such as Babel Finance and Wold halted withdrawals.
Many crypto platforms have also laid off thousands of employees.
Hodlnot said that “this difficult decision was taken for us to focus on stabilizing our liquidity and preserving assets” while it works to find the best way to protect the long-term interests of its users. .
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