On August 8, crypto exchange and lending platform Hodlnaut announced that the company has suspended withdrawals, token swaps, and deposits.Hodlnaut joins a number of crypto companies that have frozen withdrawals over the past three months. Long before Hodlnaut’s withdrawal suspension, a Terra whistleblower called Fatman warned people about Hodlnaut’s alleged problems. warned people about Hodlnaut’s alleged problems.
Another crypto platform froze operations citing recent market conditions
Another crypto exchange and lending platform called Hodlnaut has revealed that it has suspended all operations, including withdrawals, token swaps, and deposits.” Dear users, we regret to inform you that due to recent market conditions, we are immediately suspending withdrawals, token swaps, and deposits.” The companytweetedon Monday. It also withdrew its MAS license application. Here is our full statement – our next update will be [August 19],” Hodlnaut added.
Of course, the crypto community was not happy with Hodlnaut’s decision, criticizing the platform and makingfun of the business and its customersIn Hodlnaut’s Twitter announcement thread, the adage “Your key, not your coin not your coin,” the adagestands out. A blog post shared on Twitter by the crypto firm noted that the company is focused on stabilizing “liquidity and asset preservation.”
“We are actively working on a recovery plan that we hope will provide updates and details as soon as permissible.” Read more about Hodlnaut’sblog posthere.” We are consulting with Damodara Ong LLC on the feasibility and timeline of the intended implementation plan and are strategizing the recovery plan with the best interests of users in mind.” Hodlnaut’s exit pause follows companies like Celsius, Voyager Digital,Babel Finance,(31) and Vauld, which have similarly frozen their withdrawals.
Before Hodlnaut froze withdrawals, Terra whistleblowerFatmanwarned people about the platform, stressing at the time that “these websites are not as reliable as you think.” Fatman said that explainedhow Hodlnaut added Terra’s UST and LUNA (now called Classic Coin) with a high annual percentage yield (APY) Fatman further told the public that Hodlnaut had no exposure to Anchor When Terra collapsed, the platform temporarily stopped UST swaps with LUNA on May 9, and two days later Hodlnaut wrote:
Hodlnaut is not all-in on UST, as one particular rumor on Reddit mentions. This is a false claim.
Crypto Whistleblower Accuses Hodlnaut Team of Taking “False Deposits”
Following the August 8 suspension of withdrawals, Fatman tweeted a warning to people, which was ultimately worth It was worth it in the end, he said.” Hodlnaut has now frozen all withdrawals.” Fatman said.” I genuinely hope all is well there. If we have major problems, a lot of good people will go under, and I got a huge amount of hate on my thread from Hodlnaut fans, but I also got messages of thanks from customers who withdrew, so it was 100% worth it.” Fatman added that he was allegedly threatened with a lawsuit by the Hodlnaut team when he posted a Twitter thread about the company in late June.
“Hodlnaut took down their team page – it’s not that easy.Juntao Zhu said they would file a lawsuit against me because of my Twitter thread. These lawsuits never came and will never come, JT [and] Chang Teck Goh criminally took in a lot of deposits under false pretenses and deserves jail time,” Fatmanclaimed
The whistleblower alsosent an email to the Monetary Authority of Singapore (MAS) in June, sayingHe noted that “it is not a good idea for the Singapore authorities to give Hodlnaut any semblance of legitimacy.” However, no one at MAS responded to the whistleblower’s email, and he said he is sorry that he may not have been able to reach out to them enough before the withdrawal suspension took place.Fatman has become a very popular individual in the crypto community, and his social media has been very successful with nearly 100,000 followers.
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