Chocolate Finance, a Singapore-based financial services platform, has temporarily suspended instant withdrawals following a significant surge in demand. Previously, the platform allowed withdrawals of up to S$20,000 per day through its Chocolate Liquidity Programme. However, users will now face a waiting period of three to ten working days for fund transfers. This move comes after several prominent personal finance influencers flagged concerns about the company’s changes, leading to increased withdrawal activity. Here’s what we know so far.
Why Did Chocolate Finance Suspend Instant Withdrawals?
On March 10, 2025, Chocolate Finance informed customers that due to a sharp rise in withdrawal requests, funds would take longer to process. The company reassured users that this was not a liquidity issue but rather a measure to manage transaction volume efficiently.
A key trigger for this surge appears to be social media discussions, including a video by personal finance influencer Seth Wee (Sethisfy) explaining why he withdrew all his funds from Chocolate Finance. Another finance expert, Aaron Wong from The MileLion, highlighted the removal of AXS payment support on March 5, further fueling concerns among users.
Additionally, finance blogger Dawn Cher (SG Budget Babe) reported receiving a letter from Chocolate Finance attributing the rise in withdrawals to social media-driven speculation.
Chocolate Finance’s Response to the Suspension
Despite the temporary pause on instant withdrawals, Chocolate Finance has reassured customers of its financial stability. In an official statement, the company emphasized:
- Strong Financial Standing – The platform remains a “strong and stable place for your spare cash.”
- Commitment to Transparency – Chocolate Finance reiterated that customer service and transparency remain its top priorities.
- Return to Standard Fund Redemption Process – The platform is moving away from instant withdrawals and returning to traditional fund redemption timelines.
How Chocolate Finance Operates
Chocolate Finance was founded in 2024 by Walter de Oude, the creator of Singlife, and operates under Chocfin, a licensed financial services provider regulated by the Monetary Authority of Singapore (MAS). The platform is known for offering higher-than-average cash returns, with rates of:
- 3.3% per annum on the first S$20,000 deposited
- 3.0% per annum on the next S$30,000
- 4.6% per annum on future USD deposits (subject to market conditions)
Funds deposited with Chocolate Finance are invested in a diversified portfolio of fixed-income instruments, and custodial services are managed by institutions like HSBC. However, as Chocolate Finance is not a bank, funds are not covered by the Singapore Deposit Insurance Corporation (SDIC).
What This Means for Chocolate Finance Users
With instant withdrawals now unavailable, users must plan their cash flow accordingly. Key takeaways include:
- Withdrawal Delays – Users should expect a 3 to 10-day processing period for fund transfers.
- No Cancellation Policy – Once a withdrawal request is confirmed, it cannot be reversed.
- Market Uncertainty – The sudden policy change highlights the importance of understanding liquidity risks in investment platforms.
Is Chocolate Finance Still a Safe Investment?
While Chocolate Finance asserts that this is not a liquidity issue, some investors may view the suspension of instant withdrawals as a red flag. Given the platform’s relatively recent establishment in 2024, potential investors should consider their risk tolerance and diversification strategies before committing large sums.
Conclusion
Chocolate Finance’s decision to suspend instant withdrawals amid high demand has raised concerns among investors, especially following online discussions from personal finance influencers. While the company maintains its financial stability, users must now navigate longer withdrawal processing times.
For those invested in Chocolate Finance or considering using the platform, staying informed and understanding liquidity risks will be crucial in making sound financial decisions.
What do you think about Chocolate Finance’s latest move? Share your thoughts in the comments below.
