Singapore-based crypto lender Hodlnaut is reportedly dealing with a police probe over alleged offenses of dishonest and fraud.
According to studies printed in native media, the police’s industrial affairs division has launched an investigation into the founders of the trade primarily based on a number of complaints in opposition to the platform between August and November 2022.
The Singapore police famous that almost all of complaints revolve round false representations and misinformation relating to the corporate’s publicity to a sure digital token. Police additionally suggested buyers impacted by the Hodlnaut disaster to file a criticism on-line and submit verifiable paperwork of their transaction histories on the platform.
Neither the Singapore police nor Hodlnaut instantly responded to Cointelegraph’s requests for remark.
The first indicators of bother for the crypto lender got here on Aug. 8 when it suspended withdrawals on the platform citing a liquidity disaster. The suspension of withdrawals got here simply months after the notorious crypto contagion in the second quarter led by the implosion of the Terra ecosystem.
At the time, the platform claimed they’d no publicity to the now-defunct algorithmic Terra stablecoin now known as TerraUSD Classic (USTC). However, on-chain knowledge contradicted crypto lenders’ claims and instructed they held not less than $150 million in USTC.
The on-chain knowledge was later confirmed by a judicial report in October. The report famous that the crypto lender misplaced almost $190 million to the Terra collapse and later deleted hundreds of paperwork associated to their investments in order to cover their publicity.
Related: Crypto lender Hodlnaut seeks judicial administration to keep away from compelled liquidation
Hodlnaut managed to maintain its USTC publicity below wraps for nearly three months after the collapse of the Terra ecosystem however finally fell prey to the liquidity crunch forcing it to hunt judicial administration below which a courtroom appointed a brand new interim CEO for the agency. Three months down the road, its administrators are actually dealing with a police probe for conserving customers in the darkish.
In August, the crypto lender had stated it was engaged on a restructuring plan with hopes of resuming operations quickly.