On August 8, the crypto alternate and lending platform Hodlnaut introduced that the corporate has paused withdrawals, token swaps, and deposits. Hodlnaut joins a slew of crypto corporations which have frozen withdrawals over the past three months, leaving prospects little hope that they may see their funds once more. Effectively 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 alternate 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 latest market situations,” the corporate tweeted on Monday. We’ve got additionally withdrawn our MAS license software. Right here is our full assertion — Our subsequent replace shall be on [August 19],” Hodlnaut added.
After all, the crypto neighborhood was not happy with Hodlnaut’s determination and both criticized the platform or made enjoyable of the enterprise and its prospects. The “not your keys, not your cash” adage is distinguished 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 belongings.”
“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 supposed execution plan and are strategising our restoration plan with our customers’ greatest pursuits in thoughts.” Hodlnaut’s withdrawal pause follows corporations 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 burdened on the time that “these web sites aren’t as reliable as you could suppose.” Fatman defined how Hodlnaut added Terra’s UST and LUNA (now known as traditional cash) with excessive annual share yields (APY). Fatman additional detailed that Hodlnaut informed 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 ‘Below False Pretenses’
Following the withdrawal pause on August 8, Fatman stated that tweeting out the warning to folks was price it in the tip. “Hodlnaut has now frozen all withdrawals,” Fatman stated. “Genuinely hope every thing is okay there. If there are main points, a variety of good folks will go underneath. Received tons of hate on my thread from Hodlnaut followers, but in addition obtained messages from grateful prospects who withdrew, so it was 100% price it.” Fatman added that he was allegedly threatened by lawsuits from the Hodlnaut staff when he posted the Twitter thread concerning the agency on the finish of June.
“Hodlnaut has taken down their staff web page — It’s not that straightforward. Juntao Zhu said he can 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 extra deposits underneath false pretenses and deserve jail,” Fatman insisted.
The whistleblower additionally stated he despatched an electronic 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 offer Hodlnaut any semblance of legitimacy.” Nonetheless, no one from MAS responded to the whistleblower’s electronic mail and stated he felt unhealthy for probably not pushing onerous sufficient earlier than the withdrawal pause befell. Fatman has turn into a extremely popular particular person in the crypto neighborhood and his social media presence has managed to achieve him near 100,000 followers.
What do you concentrate on Hodlnaut’s withdrawal pause? What do you concentrate on Fatman’s accusations? Tell us what you concentrate on this topic in the feedback part beneath.
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