The company says it took the move “to focus on stabilizing our cash and protecting assets” while consulting with local legal firm Damodara Ong LLC on the “feasibility and timing” of its reorganization and recovery plan. The news was posted on Holdnaut’s website.
At the beginning of this year, the financial institution was granted “In-Principle Approval” (IPA) from the Malaysian Financial Authority “to provide digital payment token (DPT) services as a Major Payment Institution.”
It has been claimed that Holdnaut has told Singapore’s Monetary Authority (MAS) that it will be abandoning its application for a license.
Consequently, Hodlnaut will no longer provide its Token Swap functionality.
The corporation has stated that the next time it will provide an update on the situation will be on August 19, 2022. Still, it cannot specify a specific date for when it will resume processing withdrawals.
Growing List of Crypto Winter Affected Firms
Following the failure of Terra in May, the market has been plagued with rumors of widespread liquidity problems. Recently, the cryptocurrency hedge fund Three Arrows Capital filed for bankruptcy, and several lenders have also required bailouts.
Insolvent lenders frequently stop customer withdrawals as a preventative measure against possible bank runs. The cryptocurrency exchange Zipmex, which just recently filed for protection from bankruptcy, is the most recent example of this, even though it just recently began withdrawals for SOL, XRP, and ADA last week.
Vauld and Celsius have both resorted to the same tactic, with Celsius being the company to declare bankruptcy shortly after Vauld did so.
Crypto winter seems to be claiming a new victim every other day. With the overall crypto market in a deep drawdown, the situation doesn’t appear to be improving soon. At the time of writing, Bitcoin was trading at $23,836, up 3 % from its daily low levels, per data from Tradingview.com. Ethereum was exchanging hands at $ 1,760, up 3.5 % from its daily low levels. Still, both the counters are 65 % and 63 % down from their all-time-high levels, respectively.