February 28, 2024

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Consider It Solved

Holdnaut and its directors investigated for cheating and fraud

3 min read

The Business Affairs Division announced yesterday (Nov 23) that it has introduced an investigation into crypto system Hodlnaut and its directors for possible dishonest and fraud offences below Sections 417 and 424A of the Penal Code 1871.

Hodlnaut’s co-founders Zhu Juntao and Simon Eric Lee are both equally administrators of the firm.

The Singapore Law enforcement Power (SPF) said in a media statement that the law enforcement gained several reports involving August and November, alleging that Hodlnaut and/or its directors experienced produced untrue representations relating to the company’s publicity to the Terra/Luna electronic token ecosystem.

Previously reports claimed Hodlnaut’s administrators downplayed the extent of the group’s exposure to Terra/Luna both equally in the course of the period leading up to, and following the Terra/Luna collapse in May 2022.

Besides Hodlnaut, several other crypto corporations had been affected by the Terra/Luna collapse, which includes hedge fund A few Arrows Capital, as perfectly as crypto lenders Celsius Community and Voyager Digital.

It was previously documented that Hodlnaut lost almost US$190 million in the crypto crash.

General public urged to submit paperwork

SPF urged those people who have deposited digital tokens with Hodlnaut and believe that that they have been defrauded by way of, among other individuals, phony representations designed by Hodlnaut, to lodge a law enforcement report.

It added that any files relating to the transactions with Hodlnaut — which includes data of the payments made to and received from Hodlnaut as well as relevant correspondence with the platform — would help the law enforcement assist individuals with the overview of their grievances.

On August 8, Hodlnaut announced that it has halted withdrawals, token swaps and deposits, and knowledgeable the Monetary Authority of Singapore (MAS) to withdraw its licence application. This intended that it will no longer deliver controlled digital payment token (DPT) services.

That exact same thirty day period, it applied to the Singapore Substantial Court to be placed below interim judicial administration following the Terra-Luna collapse, as portion of their small business recovery system.

In an hard work to minimize burn off charges, Hodlnaut mentioned it would demand all open term curiosity rates to % APR from August 22. It also laid off 80 per cent of its workforce (around 40 folks) to minimize the company’s expenditure.

In end October, a Singapore court docket report disclosed that Hodlnaut has been hiding some documents from the interim judicial professionals (IJMs).

Zhu Juntao, CEO and co-founder of Hodlnaut
Zhu Juntao, CEO and co-founder of Hodlnaut / Graphic credit: Hodlnaut

The IJMs accused Hodlnaut founders Zhu Juntao and Simon Lee, and some unnamed workforce, of getting uncooperative. They are reportedly obstructing judicial administrators from accessing and managing several crucial paperwork and data. More than 1,000 documents from Google Workspace have been deleted immediately after the IJMs have been appointed.

The documents would have aided the IJMs to realize the economical placement of Hodlnaut much better, and there is also a trouble of improper maintenance of accounting and financial records even just before the IJM appointments.

Most recently on November 11, the IJMs verified that 25 for every cent of Hodlnaut’s assets are held on centralised exchanges. Of that, about 72 per cent of S$18.5 million were being parked with FTX.

They attempted to get the belongings out from FTX just before it suspended withdrawals two weeks back, but failed to do so.

Featured Graphic Credit score: Hodlnaut

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