Singapore-based crypto lender Hodlnaut has suspended withdrawals, token swaps, and deposits immediately due to recent market conditions, making it the latest crypto company to be crippled by the rout across the crypto sector.
The Hodlnaut platform was launched in 2019 and allowed investors to lend out their tokens to earn interest.
The company said in a statement it is "halting withdrawals, token swaps, and deposits immediately" due to "recent market conditions" and said the difficult decision was made to stabilise liquidity and preserve assets, even as it seeks to protect the long-term interests of its users.
Hodlnaut also announced it would withdraw its licence application from the Monetary Authority of Singapore for providing digital token payment services.
A string of cryptocurrency specialists have closed due to the recent rout in digital asset prices, which has wiped around US$2trn in value from the sector.
Hodlnaut said it is currently working in consultation with Damodara Ong over a recovery plan and will provide updates as soon as possible.
Additionally, Hodlnaut stated all user communications would be handled only through email, Twitter, and Hodlnaut Telegram, while other social media platforms will be disabled.
The company said it will issue its next update on August 19.