Hodlnaut, a Singapore-based bitcoin and crypto lender, halted withdrawals today.
A banner at the top of the lender’s website links to a statement with the title “Important Message to all Hodlnaut Users”.
The statement notifies users that withdrawals, token swaps and deposits are halted with immediate effect due to recent market conditions.
According to the Hodlnaut website the company has 10,000 active users and over $250 million in held assets. Additional to halting withdrawals, the company announced it would withdraw its application for a license from the Monetary Authority of Singapore (MAS).
The statement further reads:
“We are actively working on the recovery plan that we hope to provide updates and details on as soon as permissible. We are consulting with Damodara Ong LLC on the feasibility and timelines of our intended execution plan and are strategising our recovery plan with our users’ best interests in mind.”
Hodlnaut is the latest company to be affected by the contagion that spread throughout the bitcoin and crypto markets this year. In June, Juntao Zhu, co-founder and CEO of Hodlnaut said the company had no exposure to Three Arrows Capital.
On June 19th, Zhu Tweeted:
“Contagion, we were lucky to have relatively stringent onboarding requirements. Despite working with Three Arrows previously, we would still require them to borrow collateralized and provide financial statements (which they never did), so we had no exposure to them”
However, in June Hodlnaut saw over $150M of user withdrawals in two weeks. As of today, they claim to have $250M in held assets. In June, the $150M outflow equaled around 35% of the company’s assets.
This means, the company would have had approximately $430M in held assets before contagion spread. With $150M today, it means Hodlnaut saw outflows of around 70% of their assets in the last two months.
It appears that Hodlnaut faced a massive “bank run” after the collapse of Celsius, Three Arrows Capital and Voyager Digital. As always the case with bank runs, those who are first in line tend to be able to get their money out while those that try to withdraw last aren’t able to access their funds.
