Chocolate Finance Suspends Instant Withdrawals Due to High Demand
- simpleisgd
- Mar 10
- 2 min read
Chocolate Finance, a financial services provider in Singapore, temporarily halted instant withdrawals on its platform due to a surge in demand, prompting concern among investors.
Withdrawal Delays Cause Alarm
On March 10, Chocolate Finance announced via its mobile app that withdrawals would now take between three to 10 days, rather than being processed instantly. The news quickly spread, leading to worries about the firm’s liquidity and the safety of customer funds.
Attractive Returns, But No Deposit Insurance
Since its launch in July 2024, Chocolate Finance has attracted investors by offering returns of up to 4.2% on the first S$20,000, surpassing Treasury bill rates. The current return is 3.3%. While managing nearly S$1 billion in assets, the platform is not covered by the Singapore Deposit Insurance Corporation, which raised concerns when withdrawals were delayed.
Managing High Transaction Volumes
CEO Walter de Oude reassured users that the suspension wasn’t due to liquidity problems but rather a response to an unexpected increase in transaction requests. He emphasized that, like most fund managers, Chocolate Finance does not typically offer instant withdrawals and that customer funds remain secure.
Changes in Partnerships Spark User Frustration
The platform also faced backlash after ending its partnership with AXS, which allowed bill payments through its debit card. The change, caused by a surge in bill payments, upset many users, especially after poor communication about the decision. De Oude acknowledged that offering unsustainable perks was a mistake.
Looking Ahead
Despite these issues, Chocolate Finance, licensed by the Monetary Authority of Singapore (MAS), remains focused on providing attractive investment opportunities. The company is closely monitoring transaction volumes and aims to maintain long-term stability for its users.
