Why Withdrawing From Chocolate Finance Now Takes Days (Which Is the Industry Norm)
Before we begin, please remember that this is not personal financial advice and I am no longer a financial adviser. This is entirely my personal opinion on what is going on and why people should not panic. If you have been following my coverage on Chocolate Finance, some parts will feel quite repetitive as many of the points have been covered before.
You can also read Chocolate Finance’s statement here.
1. Where are users’ monies placed with Chocolate Finance money?
We have to be clear that money placed with Chocolate Finance is invested into investment funds, specifically investment-grade bond funds. This is separate from Chocolate Finance itself and money is with big, reputable fund managers. I mentioned this in my article and video (3:23 onwards) when I introduced Chocolate Finance:
2. Liquidating investment funds takes a few days — this is normal behaviour
Buying and selling of these funds take a few working days and this is normal behaviour. You can go to any licensed financial adviser or roboadviser in Singapore to buy the exact same funds that Chocolate Finance is invested in, and it will take days for the transaction to process.
Similarly, selling of the funds takes days to process, typically 3 to 5 working days. This is not unique to Chocolate Finance and is the industry norm, which is why Chocolate Finance is now informing users that it will take at least 3 days for funds to be withdrawn.
3. Isn’t Chocolate Finance withdrawal supposed to be instant?
Chocolate Finance has been offering a relatively unique proposition to users — instead of waiting days, Chocolate Finance has a “Liquidity Programme” that cuts that waiting time down to nearly nothing. In normal circumstances, when you withdraw money in Chocolate Finance, Chocolate Finance gives you the money first while they sell units and get back the money later. This way, you don’t have to wait for the usual processing time.
Essentially, the Liquidity Programme has been put on pause. With that, everything reverts to the usual way funds are transacted — you take days to buy, and of course, you take days to sell. This is why withdrawals are no longer instant (which by extension is the likely reason why the debit card has stopped working too).
You can read Chocolate Finance’s statement on why the programme has been put on pause.
4. Money is not commingled with Chocolate Finance and remains with fund managers
Chocolate Finance invests users’ money into regulated investment funds and is itself an MAS-regulated entity.
By not withdrawing, your funds remain invested in these funds. By withdrawing, you start the sale of the units. Again, this is the normal behaviour of how buying/selling investment funds work. Your funds are not commingled with Chocolate Finance’s funds due to strict regulations and they are with the fund managers.
5. At the moment, units will be sold at prevailing price
Should users choose to sell their units now, units will be sold at the prevailing price. This is something I mentioned in my video (or see screenshots below) if Chocolate Finance ceases to exist, or in this case pauses their top-up arrangement.
Chocolate Finance’s model (was adjusted to 3.3% p.a. a while ago):
Again, money are place in funds which are in turn invested in relatively diversified investment-grade bonds. This is true regardless with or without Chocolate Finance.
Bonds are essentially debt or the lending of money to entities like companies and/or governments. When you lend someone money, how safe it is depends on the credibility of the person and the tenure of the loans. The funds used are invested primarily in investment-grade bond funds with relatively short average durations. Until the borrower repays their debt, interest rate fluctuations can cause bond prices to move up or down. Generally, when interest rates fall, bond prices go up (and the reverse is true).
6. No more instant withdrawals so I’m holding my current positions for now
For the sake of transparency, I started with about S$38,000 in my personal account and my family member has around S$20,000. My original plan was to withdraw S$20,000 per day to take advantage of the instant withdrawal feature.
Earlier today (10th March), I was testing withdrawals and managed to get S$11,000 from my own account. Since instant withdrawals are currently paused, I will not be withdrawing until instant withdrawals come back.
if that doesn’t return, I remain very comfortable with having my money placed in the same funds that Chocolate Finance has been using. My discomfort was never with the underlying assets which are — once again — short-term, investment-grade bond funds. I would, however, prefer to have it with another platform.
In my opinion, having short-term investment-grade bond funds is a way to lower risk (yes, again the investment funds are relatively lower risk funds to me) in one’s overall investment portfolio. I generally (read: not completely) follow the Rule of 100 which states that my age should be roughly the percentage of bonds I should have.
That’s 37%, in case you’re wondering, and I will just end this article here bemoaning how it would be a very sad state of affairs if we have to be fearful each time we expressed personal opinions and/or level criticism at financial institutions/products.
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Seth Wee was a licensed financial adviser representative from 2009 to 2025, with over 16 years of experience in Singapore’s financial advisory industry.
He started Sethisfy.com in 2019 to share practical insights on credit cards, banking products, and miles strategies, helping readers identify financial products that deliver the best value. Seth has been featured in CNA, Channel 8, Today, and a host of other publications. In 2025, he was also part of a panel at CPF’s Ready For Life festival.
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i hope they sue u!
You should have thought twice b4 posting that video. Better cross fingers Choc Finance is kind enough to not take any legal actions against you siah…
The responsibility of a Financial influencer is heavier than anyone posting on consumer products. It will be best to share negative views mindfully.
From MAS:
Even if he or she is not remunerated, he will be considered to have provided financial advice if he makes such recommendations or expressions regularly.
I think you’re screwed bro.
I have always enjoyed your articles, but I think you started the panic this time with sensationalized headline along with some unclear explanations. Perhaps you are a victim of your own success. Being an operator with many followers on multiple platforms and personal finance events no longer qualifies you as just another person on the street expressing a personal opinion. You have clout. And with that comes the responsibility that is required of a media outlet. Informing your followers timely of your decisions and actions is fine. But perhaps the sensitivity level needs to be better calibrated. Many lessons for many various parties, I hope you find yours as well. I believe you have approached this matter with good intentions. Please do not let this episode discourage you from the great works that you are capable of, but to learn to be better in communicating your content in a responsible manner.
At most blacklist . Will not sue one lah after the fiasco, why reopen wounds after it has died down.
This is why you should not sensationalize your content because of views (which translates to gains). Why the need to use headline such as “I’m withdrawing everything?” While your intention was good, it creates unnecessary panic. You could say “Here are some better alternatives to CF I’m considering ..”
Look at the thumbnail you use for the video and the post, then tell me what an ordinary person on the street will feel after seeing this?
You might be a saviour to those who managed to withdraw the funds after seeing your video, but what about those who never get their hard earned money back? Those who plonked their life savings into this, while you earned affiliate commission before this saga?
I hoped you reflect on this.
thanks for fking all of us and ruining a easy thing to use. hope u and kevin get sued. not financial advice then dont talk so much next time
I agree with Kev. Its disgusting to see how Seth caused so much mayhem and panic then tell people DO NOT panic. Lets be fair to Chocolate Finance, they have kept up with their promise of guaranteed interest so far, but content like yours is causing them an almost enforced rugpull.
Just as how Chocolate Finance is leaving a bad taste in your mouth like you mentioned, alot of my friends feel the same about your recent actions towards CF.
Chocolate Finance didnt owe it to anyone to continue their AXS miles rewards in perpetuity. Totally uncalled for.
Trying to save your ass now.
i triggered a withdrawal after a friend sent me your YT video with the sensational headline, granted i did not have time to watch the full video as it was during my working hours but it did stir up feelings of fear that CF was closing down hence the action i took. looking back, i wish you knew you had clout and responsibility to your followers as well as we trust that you did your research that we otherwise would not have the time to do and would follow your advice (call it singaporean herd mentality..), and not use such extreme, rather misleading headlines to incite fear and cause panic among your followers
can u pls learn from milelion when he reported on CF? his headline is not so click bait like u, u just want to cause panic and fear for clicks -.-
Hey Seth, appreciate your videos but gotta say your title for the video was too sensationalist with the words “withdrawing everything”.
In hindsight it’s more obvious though but as others have mentioned it is better to have less exaggeration. Ultimately it was choc finance not being as good as it was, but the title gave the impression of something big happening (like a potential bank run, although it is not what’s happening).
The comments here are slightly mean, as expected for anonymous internet comments, but keep your head up and better balance the need for playing the youtube algo for views vs the impact of your increased clout. You would be fine =).
No company will ever want to work with you again. Don’t spread sensational FUD. I hope MAS investigates your content
Be careful of Ai Sue Yew from Chocolate finance.
U need to take responsibility of the ass click bait video you posted. How you think you can get away from being sued and censured by Regulator is quite another. Time MAS take action on fear mongering YouTuber like you
TAKE RESPONSIBILITY AND MAKE A STATEMENT!
Shame on you!
CF – SUE HIM UNTIL HIS PANTS DROP!
BOOO!