Cryptocurrency Lender Hodlnaut Investigated by Singaporean Authorities (Report)

2 min

Cryptocurrency Lender Hodlnaut Investigated by Singaporean Authorities (Report)

Law in have reportedly opened an investigation against the troubled cryptocurrency lender Hodlnaut. 

The police the ’s executives might have cheated users over the and committed other crimes.

Hodlnaut Takes Another Punch

As reported by a Bloomberg coverage, Singapore’s police force started probing Hodlnaut for its alleged involvement in cheating and fraud offenses. This comes because of  numerous reports which blamed the firm’s directors for having made “false representations relating to the company’s exposure to a certain digital token.”

“If you have deposited digital  tokens with Hodlnaut and believe that you may have been defrauded through, between others, false representations made by Hodlnaut, you may wish to lodge a police report at the nearest Neighbourhood Police Centre or online,” the police outlined.

The Singaporean-based digital currency lender halted withdrawals, deposits, and crypto token swaps in August, citing “difficult market conditions.” It dismissed  approximately 80 percent of its workforce and reduced its interest prices nearly a week after suspending services.

Hodlnaut filed to be placed under judicial with the Singapore High Court, hoping it could “rehabilitate” its business and prevent a forced liquidation of its assets:

“The judicial management app  provides a moratorium (or temporary pause) against legal claims and proceedings against Hodlnaut. This pause will provide us with the breathing space to focus our efforts on the recovery strategy to rehabilitate the company.”

The authorities approved the request and appointed Rajagopalan Seshadri, Paresh Jotangia, and Ho May Kee as the firm’s interim judicial managers.

The Exposure to Terra’s UST

As CryptoPotato recently reported, Hodlnaut was between the victims of the colossal Terra (LUNA) crash in May this year. The company lost $190 Million due to its exposure to the crypto stablecoin UST. 

“ It seems that the directors had downplayed the extent of the group’s exposure to Terra/Luna both during the period leading up to and following the Terra/Luna collapse in May 2022.”

The cryptocurrency lender appears to have been hiding the from its users. Bloomberg’s data revealed that some of the company’s employees deleted over 1,000 “key” documents that could have shown the exposure.

Terra’s native crypto token – Terra (LUNA) – and its crypto stablecoin – UST – plunged to virtually zero causing huge panic between and in the entire market. Numerous disclosed that some people had even committed suicide due to their multi- Million losses.

The post Cryptocurrency Lender Hodlnaut Investigated by Singaporean Authorities (Report) appeared 1st on CryptoPotato.

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