This morning, the Singapore police announced that they are investigating Hodlnaut Pte. , a crypto-lending company, and its directors for possible fraud and scams , adding to the already existing legal problems it faces. The situation surrounding cryptocurrencies seems to be getting worse by the day. Even after the huge blow to FTX, everything shows that nothing is over yet. See also: Cryptocurrency exchange Deribit hacked
The investigation began yesterday, Wednesday, 11/23, after multiple reports claimed that “the company intentionally concealed its exposure to a specific digital token,” as announced by the Singapore police. Hodlnaut on August 8 suspended withdrawals and deposits for users of the platform, citing market conditions, and filed for bankruptcy protection. A few days later, the High Court approved it.
It should be noted that since then there have been some “pending proceedings” between the company and the Singapore police. These included the country’s Attorney General, but no further information was ever disclosed.
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A few days later, it was revealed that Hodlnaut lost nearly 189 million when Terra.” The fall in UST and Luna cryptocurrencies was what started this year’s crypto crash. At the same time, the company reported another cash shortfall. According to an affidavit, Hodlnaut had outstanding debtsof about 280 million. After offsetting some assets that came into their possession, the debt reached $193 million.
The blow was huge for the company, and since then Singapore has tightened the rules regarding retail investments in crypto, in order to protect the world from a volatile sector.
Source of Information: watcher.guru
