Singapore-based cryptocurrency lending firm Hodlnaut has suspended withdrawals, deposits and swaps to focus on "stabilizing liquidity" amid a restructuring process. The firm says it has also withdrawn its license application from the Monetary Authority of Singapore (MAS) that would have granted it permission to provide crypto payments services.
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It's unclear what was the reason behind the liquidity crisis as the firm admitted it is "unable to provide a definite date as the details have yet to be finalized." The team behind Hodlnaut added:
"Halting withdrawals and token swaps was a necessary step for us to stabilise our liquidity, and give us the time to work closely with our legal advisors to come up with the best possible restructuring and recovery plan for our users."
According to reports, Hodlnaut was among big clients of the notorious bankrupt crypto lending firm Celsius Network. It is yet to be seen if the Celsius bankruptcy affected Hodlnaut's business. The firm is reportedly already consulting with Damodara Ong LLC on the feasibility and timelines of its "recovery plan."
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