Holdnaut and its administrators underneath investigation for dishonest and fraud

The Industrial Affairs Division introduced yesterday (November 23) that it had launched an investigation into crypto platform Hodlnaut and its administrators for doable crimes of dishonest and fraud underneath Sections 417 and 424A of the 1871 Penal Code.

Hodlnaut co-founders Zhu Juntao and Simon Eric Lee are each administrators of the corporate.

The Singapore Police Power (SPF) mentioned in an announcement to the media that police acquired a number of reviews between August and November alleging that Hodlnaut and/or his administrators had made false claims associated to the agency’s publicity to the token ecosystem digital Earth/Moon.

Earlier reviews acknowledged that Hodlnaut’s administrators had downplayed the extent of the group’s publicity to Earth/Moon each through the run-up to and after the Earth/Moon collapse in Could 2022.

Along with Hodlnaut, a number of different cryptocurrency firms have been affected by the Earth/Moon crash, together with hedge fund Three Arrows Capital, in addition to crypto lenders Celsius Community and Voyager Digital.

Hodlnaut was beforehand reported to have misplaced almost $190 million within the cryptocurrency crash.

Public invited to current paperwork

SPF has urged those that have deposited digital tokens with Hodlnaut and imagine they’ve been defrauded, together with by means of false statements made by Hodlnaut, to file a police report.

He added that any paperwork associated to transactions with Hodlnaut, together with data of funds made to and acquired by Hodlnaut, in addition to related correspondence with the platform, would assist police help folks in trying into their complaints.

On Aug. 8, Hodlnaut introduced that it had halted withdrawals, token buying and selling and deposits and knowledgeable the Financial Authority of Singapore (MAS) to withdraw its license software. Which means that it can now not present regulated Digital Cost Token (DPT) providers.

In the identical month, she utilized to the Singapore Excessive Court docket to be positioned underneath interim judicial administration following the collapse of Terra-Luna, as a part of their company restoration plan.

In an effort to scale back burn charges, Hodlnaut mentioned it can cost all open-term rates of interest at 0% APR from Aug. 22. It additionally laid off 80% of its workers (about 40 folks) to scale back the corporate’s bills.

Most lately, on November 11, the present interim judicial directors confirmed that 25% of Hodlnaut’s belongings are held in centralized exchanges. Of those, roughly 72% of the S$18.5 million was parked with FTX.

They tried to withdraw belongings from FTX earlier than it suspended withdrawals two weeks in the past, however failed.

Featured Picture Credit score: Hodlnaut