They explained in a statement that they made the decision in order to try to avoid forced asset liquidation, "as it is a suboptimal solution that will require us to sell our users’ cryptocurrencies at these current depressed asset prices".
Hodlnaut applies for creditor protection
After halting withdrawals on August 8, Singaporean crypto lender Hodlnaut has applied for protection against creditors: a process similar to the U.S. Chapter 11 bankruptcy.