Crypto lender Hodlnaut investigated by Singapore authorities (report)

Law enforcement agents in Singapore have reportedly opened an investigation into struggling crypto lender Hodlnaut.

Police suspect that company executives may have defrauded users over the years and committed other crimes.

Hodlnaut took another hit

According to Bloomberg reportsSingapore police have begun investigating Hodlnaut for her alleged involvement in fraud and fraud. This comes as a result of numerous reports accusing the company’s directors of making “false representations regarding the company’s exposure to a particular digital token”.

“If you have deposited digital tokens with Hodlnaut and believe that you may have been defrauded through, among other things, false statements by Hodlnaut, you may wish to file a police report at your nearest live police station or online,” the police explained.

Singapore-based cryptocurrency lender I stopped Withdrawals, deposits and token swaps in August, citing “difficult market conditions.” The eviction About 80% of its workforce and reduced rates nearly a week after suspending services.

Hodlnaut Archived She will be placed in receivership in the High Court of Singapore, in the hope that she will be able to “rehabilitate” her business and prevent the forced liquidation of her assets:

“The Legal Department’s application provides a moratorium (or temporary moratorium) on claims and legal actions against Hodlnaut. This moratorium will give us an outlet to focus our efforts on the recovery plan to rehabilitate the company.”

The authorities approved the application and appointed Rajagopalan Seshadri, Paresh Gutanjia and Ho May Kei as the interim legal chief of the company.

Exposure to Terra’s underground storage tanks

as such encrypted potatoes It was recently reported that Hodlnaut was among the victims of the massive Terra crash in May of this year. The company lost $190 million due to exposure to UST stable algorithms.

“It appears that the directors downplayed the group’s exposure to Terra/Luna both leading up to and after the May 2022 Terra/Luna crash.”

It appears that the cryptocurrency lender has hidden facts from its users. Bloomberg data revealed that some of the company’s employees deleted more than 1,000 “key” documents that could have shown exposure.

Terra’s native token – LUNA – and its stablecoin – UST – fell almost to zero causing massive panic among investors and distress across the market. Several sources revealed that some people committed suicide because of their millions of dollars in losses.

Crypto Lender Hodlnaut Post Investigated by Singaporean Authorities (Report) appeared first on CryptoPotato.

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