Crypto Lender Hodlnaut Investigated by Singaporean Authorities (Report)

Please fol­low and like us:
Pin Share

Law enforce­ment agents in Sin­ga­pore have report­ed­ly opened an inves­ti­ga­tion against the trou­bled cryp­to lender Hodlnaut. 

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

Hodlnaut Takes Another Punch

Accord­ing to a Bloomberg cov­er­age, Singapore’s police force start­ed prob­ing Hodl­naut for its alleged involve­ment in cheat­ing and fraud offens­es. This comes as a result 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, among 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 cryp­tocur­ren­cy lender halt­ed with­drawals, deposits, and token swaps in August, cit­ing “dif­fi­cult mar­ket con­di­tions.” It dis­missed approx­i­mate­ly 80% of its work­force and reduced its inter­est rates near­ly a week after sus­pend­ing services.

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

“The judi­cial man­age­ment appli­ca­tion 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 plan 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 among the vic­tims of the colos­sal Ter­ra crash in May this year. The com­pa­ny lost $190 mil­lion due to its expo­sure to the algo­rith­mic sta­ble­coin UST. 

“It appears 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 cryp­to lender appears to have been hid­ing the facts 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 token – LUNA – and its sta­ble­coin – UST – plunged to vir­tu­al­ly zero caus­ing huge pan­ic among investors and dis­tress in the entire mar­ket. Mul­ti­ple sources dis­closed that some peo­ple had even com­mit­ted sui­cide due to their mul­ti-mil­lion losses.

SPECIAL OFFER (Spon­sored)

Binance Free $100 (Exclu­sive): Use this link to reg­is­ter and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Spe­cial Offer: Use this link to reg­is­ter & enter POTATO50 code to receive up to $7,000 on your deposits.

Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *