Ex-Hodlnaut CEO faces 6 fraud charges over Terra claims

Those statements allegedly said Hodlnaut had no direct exposure to UST and did not suffer losses from the crash. Police also said Zhu published three similar posts on his personal Twitter account, now X, in June 2022.

Hodlnauts 2022 collapse returns to focus

Hodlnaut allowed users to deposit digital tokens and earn interest. Police said the platform had more than 30,000 users worldwide before it became defunct in August 2022 following financial difficulties.

As previously reported by crypto.news, Singapore police had been looking into Hodlnaut since 2022 over fraud and deception claims tied to Terra/Luna exposure. That report said previous sources claimed Hodlnaut lost close to $190 million from the UST meltdown and had about $18.5 million parked at FTX.

Hodlnaut‘s financial stress had already reached Singapore’s courts in August 2022. As crypto.news reported, the lender applied for judicial management after halting withdrawals, seeking court protection while it tried to handle a liquidity crisis.

Judicial management gave the company temporary protection from creditor claims. The move came during a wider crypto lending crisis after Terras collapse, which also hit several firms across the digital asset market.

Singapore keeps pressure on crypto firms

If convicted, Zhu faces up to 20 years in prison, a fine, or both, for each charge. Police also warned the public about risks tied to crypto products and service provider failures.

The case comes during a tougher period for crypto oversight in Singapore. crypto.news reported last week that the Monetary Authority of Singapore revoked Bsquared Technologys major payment institution license after finding false or misleading information, weak risk controls, and outsourcing failures.