Singapore crypto currency lender and borrower Hodlnaut suspended withdrawals, swaps and deposits on Monday, in the latest sign of the digital coin sector’s struggles.
The crypto lender also said it would withdraw its application for a licence from the Monetary Authority of Singapore (MAS) to provide digital token payment services, for which it received in principle approval in March.
Hodlnaut said the move was “due to recent market conditions” and was “to focus on stabilising our liquidity and preserving assets.”
The company is the latest in a string of global crypto players to run into difficulties following a sharp sell-off in markets that started in May with the collapse of two paired tokens, Luna and TerraUSD.
Other high profile failures include US crypto lender Celsius, and Singapore-based fund Three Arrows Capital, both of which filed for bankruptcy last month.
Hodlnaut was named as one of Celsius’ institutional clients, according to court filings.
Singapore, a major centre for crypto and blockchain in Asia, has seen several crypto companies run into difficulties in recent months.
Vauld, a Singapore-based crypto lending and trading platform, suspended withdrawals in early July, and later that month, Zipmex, a Southeast Asia-focused crypto exchange, suspended withdrawals, though has since resumed them for some products.
Hodlnaut and the MAS did not immediately respond to requests for comment sent outside office hours.
- Reuters with additional editing by Sean O’Meara