According to the latest reports out of Singapore, crypto lending platform Hodlnaut is under investigation over allegations of fraud. These allegations come in the wake of a court report released on Oct 28 by WongPartnership, the legal team for Hodlnaut's IJMs (Interim Judicial Managers).
According to the court report, Hodlnaut founders withheld critical financial documents from its Interim Judicial Managers. In its report, the Interim Judicial Managers noted that Hodlnaut founders deleted documents to hide their vital information.
In addition to this report, there have been several other complaints against the lender. The majority of these complaints were lodged between August 2022 and November 2022.
Due to repeated complaints against the lender, the commercial affairs department of Singapore’s police has begun investigating the platform. According to the Police, a large portion of the complaints against this lender revolves around misinformation and false representation about the lender's exposure to a specific digital asset crash.
false representations relating to the company’s exposure to a certain digital token
In simpler terms, Holdnaut lied to its users about its exposure to the TerraUSD stablecoin. Current reports indicate that the lender lost over $180 million during the crash of the algorithmic stablecoin.
Crypto traders with keen insights on market trends will recall that Holdnaut paused all withdrawals on its platform shortly after the crash of the stablecoin.
Following its decision to investigate Holdnaut, the Police issued a statement encouraging affected users to come forward. Affected users need to file an online complaint. They also need to provide verifiable documentation of their transactions on the platform.
