Singapore Police Investigate Lending Platform Hodlnaut for Alleged Fraud

    Lending platform Hodlnaut continues to face investigation from Singapore police for fraudulent acts.

    Singapore’s police force said it’s investigating Hodlnaut Pte and its directors for potential cheating and fraud offenses, adding to the legal perils faced by the beleaguered cryptocurrency lender.

    Between August and November this year, the police received multiple reports alleging that Hodlnaut or its directors had made false representations relating to the company’s exposure to a certain digital token.

    Most likely the token mentioned here is TerraUSD (UST). Because as reported, Hodlnaut halted swap, deposit and withdrawal operations at the beginning of August this year, then about 10 days later filed for judicial management.

    This lending platform said that there was no contact with the Terra ecosystem. But in fact, investigators discovered that Hodlnaut lost $190 million because of LUNA-UST collapse. Or more precisely, Hodlnaut used users’ money to lend on Anchor with an interest rate of 20% and did not “back down” in time.

    Thus, the move of Singapore police further clarified that Hodlnaut probably concealed its exposure to UST, which is considered potential fraud.

    It can be seen that although the collapse of LUNA-UST has passed half a year, the impact and consequences have not been erased. Many crypto companies and projects continue to fall into the spiral of liquidity crisis and it is difficult to have a good solution.

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