The Blockseed Loan, the Withdrawal Freeze, and Where Things Stand

→ Latest update (25 July 2026): one position left, and the path to making every user whole

We know the withdrawal freeze we put in place on 15 August 2025 has been difficult for our community, and we owe you a direct, detailed account of why we made that decision and what we have been doing about it since. This is that account, in full, from us.

Cashaa has capital deployed across a number of positions as part of how we manage the platform’s assets and generate the returns for our depositors, and by last August, a combination of those positions had become illiquid at the same time — tied up in structures and counterparties that could not return capital to us on the timeline our users needed.

To protect our users and honor our commitments during the initial phase of this crunch, we actively closed all our other outstanding loans and completely utilized Cashaa’s own company treasury to fulfill user withdrawals for as long as possible. However, our primary capital buffer became heavily concentrated in one remaining, long-running, illiquid position.

This last outstanding and longest-running position is a significant loan we extended in March 2023, described in detail below. Pausing withdrawals was not a decision we took lightly, and it was not something we did to protect ourselves — it was the only responsible way to avoid a disorderly outcome for our users while we worked to convert illiquid positions back into funds we could return. We would rather freeze withdrawals in a controlled, transparent way and recover what is owed than risk a worse outcome for the people who trusted us with their funds.

Following our treasury utilization and the successful closure of all other platform positions, the only open loan that remains outstanding on our books is a single facility extended to Manmeet Singh, Director of Blockseed Ventures Ltd., as well as a major investor in Bloq Inc (known for popular tokens like Metronome (MTN) and HEMI). In March 2023, we extended a substantial loan to Blockseed Ventures Limited. For full transparency, the borrower’s registered corporate details are set out below:

• Company: Blockseed Ventures Limited
• Incorporation: Incorporated and existing under the laws of Seychelles, IBC Registration Number 195206
• Registered Office: Registered Agent — Keyway Limited, Office No. 22, Alpha Centre, Providence, Mahe, Seychelles
• Director: Manmeet Singh
• Director’s email: manmeet@blockseed.vc

The loan was a short-term facility with interest payable monthly, and it was secured — or so we believed — by strong collateral: a convertible promissory note issued to Blockseed by a third-party company, with a face value well in excess of the loan amount. On paper, this was a well-collateralized, short-term facility.

The loan matured on 26 September 2023. It has not been repaid — not the principal, not a single month’s interest, not any part of it — at any point in the nearly three years since.

We want to be honest about our own conduct here too. Rather than immediately move to seize collateral or pursue aggressive legal action the moment the loan matured, we spent more than two years trying to work constructively with Manmeet Singh and, in parallel, with the issuer of the collateral, to find a resolution that would get our users’ funds back without unnecessary destruction of value. In hindsight, we extended more patience than the situation probably warranted. Concretely, we:

• Granted a series of formal extensions between 2023 and 2025, each one accompanied by explicit terms, deadlines, and interest continuing to accrue every month on the full outstanding balance.
• Issued a series of formal Letters of Claim between July 2024 and November 2025 as the balance grew, each one a legally significant demand for payment within a defined period. The intervals in between were periods when loan extensions had been granted.
• Pursued the issuer of the collateral directly and repeatedly — through calls, written requests, and a formal notice — for a current valuation of the pledged shares and a path to converting the collateral into value we could apply against the debt.
• Escalated internally, engaging our own Board and legal counsel once it became clear the recovery process was more complex than a simple repayment, given the shares had already converted and needed to be properly allocated to us.

A fair question from our community is simple: if this loan was secured by collateral worth well above the amount lent, why has nothing been recovered so far?

To understand the delay, it helps to look at the nature of the underlying assets. The collateral consists of converted equity positions within prominent, emerging Web3 ecosystems, which has, at points over the last two to three years, been valued at many multiples of our total claim. The most recent detailed valuation we have in writing from the issuer, dated January 2025, indicated that the collateral should have comfortably covered our claim, including all accrued interest, many times over.

Because of the high-growth trajectory of these underlying networks, our position remains heavily overcollateralized. The total market valuation of the underlying collateral assets is multiple times the value of our remaining user deposits. This substantial overcollateralization gives us immense confidence that through the finalization of the share transfer—or via rigorous legal proceedings if necessary—there is more than enough asset backing to fully recover and back 100% of our community’s funds.

However, transferring these highly specialized, multi-jurisdictional equity and token positions requires navigating complex corporate frameworks. While a January 2025 valuation confirmed the asset pool comfortably blankets our entire claim including all accrued interest, the process of legally reassigning these specific shares from Blockseed to Cashaa involves extensive administrative processing by the project’s legal representation.

On 4 January 2026, after years of non-payment, Manmeet Singh agreed to transfer the entirety of Blockseed’s converted shareholding in the issuing company to Cashaa as full and final settlement of the debt. We agreed. We were told at the time that completing the transfer should not take long.

It has now been more than six months. We have provided every piece of documentation requested of us — corporate records, compliance information, board resolutions, and more — promptly and in full. In that same period, we have absorbed a string of missed deadlines from the other side, changes in the personnel handling this on their end, and, as recently as this month, a stated pause in the process by their own outside counsel citing an internal issue on their side that has nothing to do with us. Every month this drags on, the amount owed to us continues to grow with accruing interest, and our users continue to wait.

We have made clear to all parties involved that we consider this settlement non-negotiable and that further delay is not acceptable. We are prepared to pursue every legal avenue available to us, in every relevant jurisdiction, to bring this to a close.

We know “we’re working on it” is not the answer anyone wants to hear after this long. But we would rather tell you exactly what has happened, exactly what we’ve done, and exactly where the obstacles have come from, than offer vague reassurance.

The withdrawal freeze exists because our remaining capital is tied up in this single loan position. Because we exhausted our company treasury to service early withdrawals and successfully cleared all other platform loans, resolving this final Blockseed position is the definitive key to reopening the platform. The robust overcollateralization of these assets guarantees that your funds are backed; it is strictly a matter of clearing the legal administrative layers to unlock them. The pause on withdrawals was a decision made to protect users’ interests, not our own.

We will continue to update this community as the collateral transfer progresses, and we will not lift the freeze in a way that puts any user at greater risk than the status quo. Thank you for your patience while we finish the job of recovering what is owed.

— Cashaa Leadership