Hodlnaut, a Singapore-based crypto currency lender/borrower, has stopped withdrawals, swaps, and deposits, according to the company on Monday. This is the latest sign that there is stress in the cryptocurrency market.
Also, the crypto lender said that it would withdraw its application to the Monetary Authority of Singapore for a license to offer digital token payment services. This was in addition to receiving in principle approval in March.
Hodlnaut stated that the decision was made “due to market conditions” and “to concentrate on stabilising liquidity and preserving assets”.
After a sharp sell-off in crypto markets that began in May with the collapse two paired tokens, Luna USD and TerraUSD, the company is now the latest to fall prey to financial difficulties.
Another high-profile failure is the U.S. crypto lender Celsius and Three Arrows Capital in Singapore, which both filed for bankruptcy last month.
According to court filings, Hodlnaut was listed as one of Celsius’ institutional clients.
In recent months, several troubled crypto companies have been found in Singapore, Asia’s largest crypto- and blockchain hub.
Vauld, a crypto trading and lending platform based in Singapore, stopped withdrawals in July. Zipmex, an Asian-focused crypto exchange, also suspended withdrawals but has since resumed them for certain products.
Hodlnaut, and the MAS, did not immediately respond when contacted outside of office hours.