Let's talk about the elephant in the room. I have some investment with Chocolate
Finance (CF), and nope, I didn't withdraw despite the saga.
If you’ve been following the news, you know that CF hit a rough patch in March 2025, with a wave of withdrawals triggered by the suspension of instant withdrawals and some finfluencer-fueled panic.
But here’s my take: I’m staying put, and I’ll explain why.
Understanding the Chocolate Finance Saga
For those who missed it, the drama kicked off when CF paused its instant withdrawal feature on March 10, 2025, citing “high demand.” This followed the removal of a popular miles-earning promotion tied to AXS payments, which upset some users.
Prominent finfluencers, like those from Sethisfy and Kelvin Learns Investing, posted videos announcing their withdrawals, sparking fears of a “bank run.”
The result? A staggering S$500 million in net withdrawals, slashing CF’s assets under management by 40%. Social media and forums like Reddit buzzed with speculation, with some users worried their funds were at risk.
Unlike banks, CF isn’t covered by the Singapore Deposit Insurance Corporation (SDIC), which insures up to S$100,000 in deposits.
This added fuel to the panic, as people questioned the safety of their money. But here’s the thing: CF isn’t a bank.
It’s a fund management platform licensed by the Monetary Authority of Singapore (MAS), investing your money in short-term bond funds and money market funds.
These investments take time to liquidate, typically 3-10 business days, which is standard for such platforms.
Why I Wasn’t Worried
I don’t have a Chocolate Finance debit card, so the AXS promotion drama didn’t affect me.
My investment with CF is straightforward: I park my money, it gets invested in a diversified portfolio of low-risk, short-term bond funds, and I earn a target return (3.3% p.a. on the first S$20,000 and 3% p.a. on the next S$30,000).
The recent saga didn’t shake my confidence because I understand how CF operates.
First, CF’s funds are held in segregated, custodied accounts with institutions like Allfunds Singapore, regulated by MAS. This means my money is separate from CF’s own finances.
Even if CF were to go under (which I don’t believe is likely), my funds wouldn’t just vanish—they’d be protected, though access might be delayed during legal proceedings. Second, the withdrawal delays were expected.
When you invest in bond funds, redeeming units isn’t instant like withdrawing cash from a savings account. CF’s instant withdrawal feature was a perk, funded by their own capital, not a guarantee. When demand surged, they paused it to manage the volume, which makes sense.
I trusted that my funds would be refunded, even if it took time. Reports from users on Reddit and news outlets like The Business Times confirmed that withdrawals were processed within the promised 3-6 business days, with many receiving funds by March 13-19.
The Bigger Picture: Risk and Reward
Investing with CF isn’t risk-free. The funds they invest in are low-risk but not capital-guaranteed. If interest rates rise or markets tank, you could face losses, especially on amounts above S$50k, where CF’s top-up program doesn’t apply.
I minimise this risk by only investing below S$20k. The bonds CF invests in are mostly AAA- to BBB-rated, with short maturities (often under a year), making them less volatile than equities.
Plus, with interest rates trending downward, bond prices are more likely to stabilize or rise, which bodes well for CF’s portfolio.
The saga highlighted a key lesson: many investors didn’t fully understand what they were signing up for. CF’s marketing leaned heavily on “instant withdrawals” and “high returns,” which attracted users chasing yields without reading the fine print.
When the instant withdrawal perk vanished, panic ensued. I don’t blame CF entirely—CEO Walter de Oude admitted they could’ve communicated better—but I also think investors need to do their homework.
I knew my money was invested, not sitting in a bank, so I wasn’t surprised by the 3-10 day withdrawal timeline.
Why I’m Staying with CF
Despite the bad press, I believe CF is solid. They’re MAS-licensed, transparent about their fund allocations (visible in the app), and have a track record of delivering on their target returns through their top-up program.
The fact that they processed most withdrawals within the standard redemption cycle, even under pressure, shows resilience. By March 25, CF reported net inflows, suggesting others share my confidence.
Final Thoughts
The Chocolate Finance saga was a wake-up call for many, but it didn’t change my perspective. I stayed because I understood the risks, trusted the process, and believed in CF’s ability to weather the storm.
If you’re considering investing with CF or similar platforms, read the terms, know what you’re investing in, and don’t expect bank-like liquidity.
For me, the saga was just noise—my money’s still with CF, and I’m sleeping just fine.
Disclaimer: This is my personal take and not financial advice. Do your own research before investing.
If you’ve been following the news, you know that CF hit a rough patch in March 2025, with a wave of withdrawals triggered by the suspension of instant withdrawals and some finfluencer-fueled panic.
But here’s my take: I’m staying put, and I’ll explain why.
Understanding the Chocolate Finance Saga
For those who missed it, the drama kicked off when CF paused its instant withdrawal feature on March 10, 2025, citing “high demand.” This followed the removal of a popular miles-earning promotion tied to AXS payments, which upset some users.
Prominent finfluencers, like those from Sethisfy and Kelvin Learns Investing, posted videos announcing their withdrawals, sparking fears of a “bank run.”
The result? A staggering S$500 million in net withdrawals, slashing CF’s assets under management by 40%. Social media and forums like Reddit buzzed with speculation, with some users worried their funds were at risk.
Unlike banks, CF isn’t covered by the Singapore Deposit Insurance Corporation (SDIC), which insures up to S$100,000 in deposits.
This added fuel to the panic, as people questioned the safety of their money. But here’s the thing: CF isn’t a bank.
It’s a fund management platform licensed by the Monetary Authority of Singapore (MAS), investing your money in short-term bond funds and money market funds.
These investments take time to liquidate, typically 3-10 business days, which is standard for such platforms.
Why I Wasn’t Worried
I don’t have a Chocolate Finance debit card, so the AXS promotion drama didn’t affect me.
My investment with CF is straightforward: I park my money, it gets invested in a diversified portfolio of low-risk, short-term bond funds, and I earn a target return (3.3% p.a. on the first S$20,000 and 3% p.a. on the next S$30,000).
The recent saga didn’t shake my confidence because I understand how CF operates.
First, CF’s funds are held in segregated, custodied accounts with institutions like Allfunds Singapore, regulated by MAS. This means my money is separate from CF’s own finances.
Even if CF were to go under (which I don’t believe is likely), my funds wouldn’t just vanish—they’d be protected, though access might be delayed during legal proceedings. Second, the withdrawal delays were expected.
When you invest in bond funds, redeeming units isn’t instant like withdrawing cash from a savings account. CF’s instant withdrawal feature was a perk, funded by their own capital, not a guarantee. When demand surged, they paused it to manage the volume, which makes sense.
I trusted that my funds would be refunded, even if it took time. Reports from users on Reddit and news outlets like The Business Times confirmed that withdrawals were processed within the promised 3-6 business days, with many receiving funds by March 13-19.
The Bigger Picture: Risk and Reward
Investing with CF isn’t risk-free. The funds they invest in are low-risk but not capital-guaranteed. If interest rates rise or markets tank, you could face losses, especially on amounts above S$50k, where CF’s top-up program doesn’t apply.
I minimise this risk by only investing below S$20k. The bonds CF invests in are mostly AAA- to BBB-rated, with short maturities (often under a year), making them less volatile than equities.
Plus, with interest rates trending downward, bond prices are more likely to stabilize or rise, which bodes well for CF’s portfolio.
The saga highlighted a key lesson: many investors didn’t fully understand what they were signing up for. CF’s marketing leaned heavily on “instant withdrawals” and “high returns,” which attracted users chasing yields without reading the fine print.
When the instant withdrawal perk vanished, panic ensued. I don’t blame CF entirely—CEO Walter de Oude admitted they could’ve communicated better—but I also think investors need to do their homework.
I knew my money was invested, not sitting in a bank, so I wasn’t surprised by the 3-10 day withdrawal timeline.
Why I’m Staying with CF
Despite the bad press, I believe CF is solid. They’re MAS-licensed, transparent about their fund allocations (visible in the app), and have a track record of delivering on their target returns through their top-up program.
The fact that they processed most withdrawals within the standard redemption cycle, even under pressure, shows resilience. By March 25, CF reported net inflows, suggesting others share my confidence.
Final Thoughts
The Chocolate Finance saga was a wake-up call for many, but it didn’t change my perspective. I stayed because I understood the risks, trusted the process, and believed in CF’s ability to weather the storm.
If you’re considering investing with CF or similar platforms, read the terms, know what you’re investing in, and don’t expect bank-like liquidity.
For me, the saga was just noise—my money’s still with CF, and I’m sleeping just fine.
Disclaimer: This is my personal take and not financial advice. Do your own research before investing.
===================================
Sources:
- The Business Times, “Chocolate Finance takes S$500 million hit from 2 weeks’ run of redemptions”
- The Straits Times, “Chocolate Finance to process withdrawals in ‘orderly’ manner”
- CNA, “CNA Explains: What happens if a Singapore-licensed investment platform goes under?”
- Reddit, r/singaporefi discussions