Crypto lender Hodlnaut under fire for defrauding from digital tokens

Singapore Commercial Affairs Department recently launched an investigation on Hodlnaut, a crypto lender, after receiving reports of its directors defrauding users about certain digital tokens.

In the recently published report, CAD shared that many people have filed complaints against Hodlnaut for making “false representations” about a certain digital token, not currently known. In the recently published report, CAD shared that many people have filed complaints against Hodlnaut for making “false representations” about a certain digital token, not currently known.

Hodlnaut held a lot of UST tokens, which is Terra’s USD stablecoin. So, when the LUNA ecosystem collapsed in May 2022, the UST stablecoins also fell drastically leaving holders with empty pockets.

Now, CAD says that Hodlnaut’s directors claim they still hold digital tokens even though the platform is clearly in loss and also filed for interim judicial management for protection in August.

Hodlnaut has shown many suspicious movements during the past few months. The platform seems to be at loss but still, the directors insist they have funds in those digital tokens.

Many Singaporeans have filed complaints between August and November 2022 against Hodlnaut, so now CAD is taking over the case and is investigating the crypto lending platform.

The authorities have asked people to share if they have deposited any digital tokens on Hodlnaut with proof of documents of the transactions that could help them with experiments.

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