CustodyStress
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Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01089

Hodlnaut had approximately $500 million in assets under management and had suffered

Constrained
Case description
On 8 August 2022, Singapore-based crypto lender Hodlnaut froze all withdrawals, token swaps, and deposits, citing 'recent market conditions.' The company simultaneously withdrew its application for a Major Payment Institution licence from the Monetary Authority of Singapore. Hodlnaut had approximately $500 million in assets under management and had suffered significant losses from exposure to the collapsed Terra/UST ecosystem. Customers with Bitcoin and other assets on the platform lost all access.
Custody context
Stress conditionVendor lockout
Custody systemExchange custody
OutcomeConstrained
DocumentationUnknown
Year observed2022
CountrySingapore
Structural dependencies observed
Institutional cooperation required
What this illustrates
Getting access back required help from an institution — and that help wasn't available. Whether full access was ultimately possible is unclear, but significant delay or outside intervention was involved.
Outcome interpretation
Access remained possible, but only with delay, dependence, or significant difficulty.
Source
Publicly Reported
Evidence type
News article
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Framework references
Terms guide
Survives
Access remained possible under the reported conditions.
Constrained
Access remained possible, but only with delay, dependence, or significant difficulty.
Blocked
Access was not possible under the reported conditions.
Indeterminate
There was not enough information to determine the outcome.
Single-person knowledge
Recovery depended on information or capability held by one individual who was unavailable.
Institutional dependence
Recovery depended on a third-party institution or service that was inaccessible or uncooperative.
Documentation gap
Recovery depended on instructions that were missing, incomplete, or unclear.
Authority mismatch
The person with legal authority to act did not have operational access, or vice versa.
Original text
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