Asian cryptocurrency lenders, Hodlnaut, have announced a temporary freeze of withdrawals, deposits and token swaps on their platform citing “difficult market conditions” and other similar problems as the reason for the difficult decision.

Following the official announcement, Hodlnaut also informed Singapore’s finance regulator, the Monetary Authority of Singapore (MAS), of it’s decision to withdraw it’s application for an operational license in the city-state.

Hodlnaut was founded in 2019 and has joined the growing list of other ailing cryptocurrency firms that have announced a freeze of transactions following the market downturn. Babel Finance and Vauld announced transaction freezes on their respective platforms while Celsius Network and Voyager Digital went on to declare bankruptcy.

Hodlnaut said that it is actively working on a recovery plan and is currently in discussions with Damodara OnG LLC on the timelines and feasibility of the plan. The company’s founder, Juntao Zhu has changed his Twitter account settings to private and the company has informed the public that they will have an update ready by 19th August.

Terra UST’s collapse began a deadly spiral for the cryptocurrency community that started a dominoes effect of disaster for crypto lenders. However, Hodlnaut did not say anything that suggested that the stablecoin’s depeg played a role in their recent failings. Popular whistleblower, FatMan, has however indicated that Hodlnaut might have had a serious exposure to the Terra collapse worth millions of dollars.

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