According to documents made public on Nov. 23, the Commercial Affairs Department, the Singapore police’s white-collar crime unit, is looking into Hodlnaut, a cryptocurrency lender with headquarters in Singapore that is now under interim judicial administration.
Between August and this month, the police said they received many reports suggesting that Hodlnaut and/or its directors had misrepresented the company’s exposure to an unnamed digital token.
Holdnaut and its directors are the subject of a police investigation concerning possible violations of the Penal Code Sections 417 and 424A relating to deceit and fraud.
People who deposited digital tokens with Hodlnaut and think they may have been scammed by the company’s misrepresentations can file police reports backed up by supporting documentation.
In August, Hodlnaut suspended deposits, token swaps, and withdrawals as it struggled with a liquidity shortage brought on by market circumstances following the Terra-Luna collapse. After the algorithmic stablecoin’s dollar peg broke, its Hong Kong subsidiary, Hodlnaut HK, suffered a loss of US$190 million, according to Bloomberg.
In a separate development, the company’s interim Judicial Managers (IJM) disclosed on Nov. 11 that over 71% of the company’s assets, totaling S$18.47 million, were held with the now-defunct cryptocurrency exchange FTX, accounting for about 25% of the company’s assets on centralized exchanges. As the Sam Bankman-Fried-backed exchange collapsed, IJMs reportedly attempted to transfer the assets from FTX to other centralized exchanges but were unsuccessful.