Singapore-based crypto lender Hodlnaut suspends withdrawals

The latest indication of strain in the cryptocurrency market is the suspension of withdrawals, swaps, and deposits by Hodlnaut, a Singapore-based bitcoin lender and borrower.

The cryptocurrency lender also said it will revoke its March in-principle permission for a license from the Monetary Authority of Singapore (MAS) to provide digital token payment services.

Hodlnaut said that the action was taken "to concentrate on stabilising our liquidity and maintaining our assets" and was motivated by "current market circumstances."

The firm is the most recent in a long line of cryptocurrency players to have issues as a result of a strong market sell-off that began in May with the demise of two linked coins, Luna and TerraUSD.

Other notable failures include Singapore-based firm Three Arrows Capital and U.S. crypto lender Celsius, both of which declared bankruptcy this month.

According to court documents, Hodlnaut was listed as one of Celsius' institutional customers. In recent months, a number of cryptocurrency startups have encountered challenges in Singapore, a significant hub for blockchain and cryptocurrency in Asia.

Early in July, the Singapore-based cryptocurrency loan and trading platform Vauld stopped allowing withdrawals. Later that month, the Southeast Asia-focused cryptocurrency exchange Zipmex also stopped allowing withdrawals, but it has subsequently allowed them for specific goods.

Requests for comment made outside of business hours were not immediately answered by Hodlnaut or the MAS.