On August 8, cryptocurrency lending platform Hodlnaut suspended withdrawals, swaps and token deposits due to liquidity crunch.

The company explained the situation according to the current market conditions. The project team is working with Singapore-based law firm Damodara Ong LLC to develop a recovery plan.

“Withdrawals and token swaps need to be suspended to stabilize our liquidity and develop the best possible restructuring and recovery plan,” the statement said.

Hodlnaut also withdrew its application for a license from the Monetary Authority of Singapore to conduct clearing transactions. However, the platform will continue to pay customers interest until further notice.

The company will disable social media accounts, except for a few official channels. Hodlnaut’s YouTube account has already been deleted, and founder Juntao Zhu has closed his Twitter account.

A page with a list of team members, including the two founders, five employees, and a consultant, has also disappeared from the company’s website. The page archive is accessible through the Wayback Machine.

Recall that in early July, the Vauld crypto lending platform was suspended due to financial difficulties and announced a possible restructuring.

In mid-July, the Celsius Network platform filed for bankruptcy. Its liabilities exceed its assets on the balance sheet by almost $1.2 billion.

A month ago, Celsius suspended withdrawals, swaps and transfers between accounts. Then the company explained this with “extreme market conditions”, but analysts suggested that the real reason for what was happening was a “liquidity crisis”.

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