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On August 8, crypto exchange and lending platform Hodlnaut announced that the company has stopped withdrawals, token exchanges and deposits. Hodlnaut joins a number of crypto firms that have frozen withdrawals over the past three months, leaving customers with little hope that they will see their money again. Well before Hodlnaut’s retreat hiatus, the Terra informant called Fatman warned people about Hodlnaut’s alleged problems.
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 we will stop withdrawals, token exchanges and deposits immediately due to recent market conditions,” the company tweeted on Monday. We have also withdrawn our MAS license application. Here is our full statement – Our next update will be on [August 19]”, Hodlnaut added.
Of course, the crypto community was not happy with Hodlnaut’s decision and criticized either the platform or made fun of the business and its customers. The saying “not your keys, not your coins” is prominent in Hodlnaut’s Twitter announcement thread. In the blog post that the crypto company shared on Twitter, it notes that the company is focused on stabilizing “liquidity and preserving assets.”
“We are actively working on the recovery plan which we hope to provide updates and details on as soon as permitted,” Hodlnaut’s blog post detailed. “We are consulting with Damodara Ong LLC on the feasibility and timelines of our intended execution plan and are strategizing our recovery plan with the best interests of our users in mind.” Hodlnaut’s withdrawal pause follows companies such as Celsius, Voyager Digital, Babel Finance and Vauld also freezing withdrawals.
Before Hodlnaut freezes withdrawals, the Terra alerter Fat man warned people about the platform, stressing at the time that “these sites are not as reliable as you might think.” Fat man explained how Hodlnaut added Terra’s UST and LUNA (now referred to as classic coins) with high annual percentage returns (APY). Fatman further detailed that Hodlnaut told the audience that they had no exposure to Anchor. When Terra collapsed, the platform temporarily suspended LUNA and UST exchanges on May 9, and two days later Hodlnaut wrote:
Hodlnaut is NOT all-in on UST as a specific rumor on Reddit has mentioned. This is a false claim.
After the withdrawal pause on August 8, Fatman said it was worth it to finally tweet out the warning to people. “Hodlnaut has now frozen all withdrawals,” said Fatman. “Really hope all is well there. If there are big problems, many good people will go under. Got tons of hate on my thread from Hodlnaut fans, but also got messages from grateful customers who backed out, so it was 100% worth it.” Fatman added that he was allegedly threatened with lawsuits from the Hodlnaut team when he posted the Twitter thread about the firm in late June.
“Hodlnaut has taken down their team page – It’s not that easy. Juntao Zhu said he would file a lawsuit against me for my Twitter thread. These lawsuits never came and never will. JT [and] Chang Teck Goh criminally took multiple deposits under false pretenses and deserves jail,” Fatman insisted.
The whistleblower too so he emailed the Monetary Authority of Singapore (MAS) in June as well. He noted that he did not think it was a good idea for the “Singaporean authorities to give Hodlnaut any kind of legitimacy”. However, no one from MAS responded to the whistleblower’s email and said he felt bad for possibly not pushing hard enough before the withdrawal break took place. Fatman has become a very popular individual in the crypto community and his social media presence has managed to gain him close to 100,000 followers.
What do you think of Hodlnaut’s withdrawal break? What do you think of Fatman’s accusations? Let us know what you think about this topic in the comments section below.
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