https://i.redd.it/lse6h1h4hrne1.jpeg
created by fateoftheg0dz on 10/03/2025 at 01:00 UTC
578 upvotes, 103 top-level comments (showing 25)
From Milelion: Chocolate Finance pauses instant withdrawals
If you've got funds in your Chocolate Finance account, a heads up that instant withdrawals are "temporarily paused" owing to "high demand".
Funds can still be withdrawn during this period, but will take 3-10 working days to reach your account.
You can still spend your funds via the Chocolate Visa Card however, which means you can cash out instantly via GrabPay (do remember that GrabPay requires a minimum top-up of S$10).
To do this, add your Chocolate Visa to GrabPay, then use it to top-up your GrabPay account. After that, transfer the balance out to your bank account via the Transfer button.
Comment by shuijikou at 10/03/2025 at 01:11 UTC
572 upvotes, 4 direct replies
Many ppl withdraw→announce delay→panic→even more ppl withdraw, it's a start of a downwards spiral
Comment by AdministrativePin952 at 10/03/2025 at 01:17 UTC
278 upvotes, 2 direct replies
Please contact “custom service”💀
Comment by djmatt85 at 10/03/2025 at 01:10 UTC
171 upvotes, 1 direct replies
That notice is only going to exacerbate the bank run.
Comment by fatenumber at 10/03/2025 at 01:17 UTC
80 upvotes, 2 direct replies
why are they experiencing mass withdrawals?
Comment by yeitiswhatitis at 10/03/2025 at 01:05 UTC*
217 upvotes, 4 direct replies
Bank run?
Btw Choc Finance is not insured by SDIC…good luck to those who have funds in it. Hope you get your money back without issue
Comment by aromilk at 10/03/2025 at 04:28 UTC
20 upvotes, 2 direct replies
The same video creators who are now pulling out are the same who endorsed and promoted Choc
Comment by Odd_Duty520 at 10/03/2025 at 01:13 UTC*
80 upvotes, 2 direct replies
Can someone give a tl:dr of these guys, their history, their product offerings and why there is a run? I never heard of these guys before
Comment by breadstan at 10/03/2025 at 03:00 UTC*
51 upvotes, 2 direct replies
Like most trust and money market funds, these are all not insured. Plus CF is not a custodial entity, so the deposits are not insured as well. Money is held in CF’s custodial accounts, so even if those money are insured, it is insured to CF.
In the event of a liquidation, customer of CF might not be able to get back their money as financiers of CF (bond holders) might still be the first to get their money.
~~This is different from if you deposit in a brokerage (say IBKR/Moomoo/Tiger etc…), they are custodian of you, so each account that is open in them is SDIC insured up to 75k SGD. However, the money used to invest in money market funds, trust or other securities are not insured. So if your Fullerton money market goes bust, even if you use these brokerage, you will also have to say bye bye to your money. The only protection you have is in case you redeemed your investment, and they sit in your brokerage account, and your brokerage goes bust, you will be insured up to 75k.~~
Edit. I am absolutely wrong about brokerage (even if they are custodians) being insured. As long as the money is not sitting in a bank, CPF and insurance, it is NOT insured under SDIC. However brokerage may be under foreign insurance such as SIPC, but is subjected to accounts opened under such protection, for example Moomoo US and are protected if you owned US securities.
Do be mindful of the difference in what is insured as savings and what are investments. CF is an investment. They invest in safe products. But they are not a bank or a custodian. So you are taking an additional risk of your counterparty going bust being the issue, but not the underlying investment.
Additional note: When you put your money into any forms of fund or into a fund house, always read their prospectus or fact sheet to ensure you know what you are investing into.
If you want absolute safety, then just go for Fixed Deposits in a bank (SDIC insured) or just put in CPF (high yield savings, and definitely insured) and or SSB or sovereign debt from countries like US. Else every other form of investment has counterparty risks present, some higher than others (like fintech).
Comment by horsetrich at 10/03/2025 at 01:23 UTC
36 upvotes, 5 direct replies
Ok this is weird. I tried to top up GrabPay using my Chocolate card, but Grab says there is insufficient amount in my bank account to do the top up.
Good thing is it's not a big amount.
Should I worry?
Comment by tens919382 at 10/03/2025 at 05:03 UTC
12 upvotes, 0 direct replies
Bad business decision to merge debit card balances with investment balances. Debit card funds are very liquid and meant for immediate use. What happens if someone tops up $10M and spends it all at once? Or if sudden changes like the AXS incident make the card unattractive to users and cause mass withdrawals??
Comment by Difficult_Storm_1462 at 10/03/2025 at 05:40 UTC
10 upvotes, 0 direct replies
Just tried at merchant cannot spend anymore, they blocked it as well
Comment by GlobalSettleLayer at 10/03/2025 at 07:01 UTC
10 upvotes, 0 direct replies
Withdraw first, ask questions later. All you have to lose is that little bit of interest, for now.
Comment by khaosdd at 10/03/2025 at 01:31 UTC
38 upvotes, 1 direct replies
OK la not really that bad la imo.
Since unlike crypto, local digital wealth platforms should be much better regulated.
Chocolate Finance is not covered by the Singapore Deposit Insurance Corporation (SDIC) because we are not a bank. Banks have SDIC protection because if the bank fails, your money is at risk. Chocolate operates differently. Your funds with Chocolate Finance are held separately by trusted custodians, HSBC and State Street, under the management of our fund managers, and are ringfenced in the event that anything happens to Chocolate.
So both running away w your money and creditors accessing your funds to cover debt owe should be very difficult if not impossible.
How long before u get back your money tho is the million dollar question.
(u shouldn't be locking up funds that is required to be liquid in the first place)
Comment by diningtable14 at 10/03/2025 at 08:05 UTC
10 upvotes, 1 direct replies
to summarize:
1. I can’t withdraw money.
2. I can’t make card transactions.
3. Customer service doesn’t answer.
basically chocolate is down.
so what works?
1. marketing ads with famous actor
2. investor who says that all is good because it’s Walter, and everyone is bad.
Comment by RaygunSG1984 at 10/03/2025 at 09:51 UTC
10 upvotes, 0 direct replies
Are all the stupid financial influencers who recommended this going to say sorry now if people can’t get back their money? lol
Comment by Twrd4321 at 10/03/2025 at 01:14 UTC
72 upvotes, 2 direct replies
People may complain the major banks provide low interest but they won’t pull off things like this.
Money I need immediately should not be invested. If I want higher returns, use only money I don’t need in very short notice.
Comment by possibili-teas at 10/03/2025 at 02:53 UTC
19 upvotes, 1 direct replies
Wah, 227 people are... First time I see so many people 👀 in a post here at this office hours, ji bai siao liao
Comment by RedBerryAngel at 10/03/2025 at 06:04 UTC
8 upvotes, 0 direct replies
can't even spell 'customer' correctly.
Comment by reapertorn at 10/03/2025 at 01:33 UTC
25 upvotes, 0 direct replies
Imagine using a proper platform instead of "Chocolate" next time marshmellow how?
Comment by mintshooky at 10/03/2025 at 07:19 UTC
7 upvotes, 1 direct replies
quite surprising till now still no official statement from CF, seems like the screenshot going around is addressed to influencers / partners who are endorsing/marketing CF. Can't blame people from panic withdrawing when there is complete no response from them. My friend says the whatsapp chat now is now completely dead compared to morning where there were agents still at least trying to explain the situation.
Comment by Playful-Judgment2112 at 10/03/2025 at 07:20 UTC
6 upvotes, 0 direct replies
Fucked now
Comment by 39strangers at 10/03/2025 at 08:38 UTC
6 upvotes, 2 direct replies
Is this a liquidity issue? It is nonsense like this that cause bank runs. Die liao. Once word get out on the streets, funds will stop flowing in. If there is only out, the whole thing is done.
Comment by bonkers05 at 10/03/2025 at 01:30 UTC
23 upvotes, 2 direct replies
http://sethisfy.com/im-withdrawing-everything-from-chocolate-finance-heres-why/[1][2] was the trigger?
1: http://sethisfy.com/im-withdrawing-everything-from-chocolate-finance-heres-why/
2: http://sethisfy.com/im-withdrawing-everything-from-chocolate-finance-heres-why/
Comment by Express_Leave3792 at 10/03/2025 at 06:20 UTC
20 upvotes, 1 direct replies
They’ve released a statement.
Dear Chocolate Finance Community,
We’re currently experiencing an increase in withdrawals, partly driven by social media. We fully understand that seeing negative content can be unsettling, so we want to address this head-on.
We want to reassure you that Chocolate Finance remains strong, stable, and secure. Our business fundamentals are solid, and your money is always safe. As a result of the increase in withdrawals, we have temporarily paused our instant liquidity programme and fund settlement now takes a few days as is the usual market practise. The recent delays in instant withdrawals are not a liquidity issue but a matter of managing our transaction volume. Unlike other fund managers where redemptions take a few days, Chocolate designed our Liquidity Programme to facilitate instant withdrawal. We simply pay it out first and settle with the fund manager later. However when withdrawal volumes are large, we need to pause instant withdrawals for a while and wait for the settlements to catch up.
As you know, Chocolate is not a bank, and therefore there is no risk of a ‘bank run’ on Chocolate. Customer money is separately segregated and safeguarded under independent custody. If customers want to withdraw all their money, we sell the equivalent amount from the funds and send the money to our customers. Your money is never at risk from this liquidity arrangement.
What does this mean for you? ● Your funds are always safe. ● Withdrawals continue to be processed, with standard withdrawals taking 3–6 business days, but may take a little longer if you’ve only recently deposited them. ● We will reinstate the instant liquidity programme in time. We understand that waiting for withdrawals to process can be frustrating, and we deeply appreciate your patience during this time.
We know that trust is built on transparency. At Chocolate, we only make money when you do. We don’t rely on leverage or risky investments to generate returns. Instead, we focus on carefully selected quality funds to keep your returns steady and ensure that you can access your money whenever you need it.
If you have concerns, we encourage you to read through our FAQ’s and our T&Cs or reach out to us directly. We appreciate the trust you’ve placed in us and remain fully committed to making Chocolate Finance the best place for your money.
Thank you for being part of our journey. The team at Chocolate Finance
Comment by Chrissylumpy21 at 10/03/2025 at 04:12 UTC
6 upvotes, 0 direct replies
Is t this super concerning?!
