Singapore’s business crime investigation unit, the Department of Business Affairs (CAD), said on Wednesday that the embattled cryptocurrency The credit institution launched an investigation against Hodlnaut for “possible cheating and fraud”.
Charges Against Cryptocurrency Exchange Hodlnaut Related to Terra (LUNA)
Between August and November, police received “multiple reports” that Hodlnaut and his managers had made “misrepresentations” about the lender’s investment in a “specific digital token.”
The anonymous token is likely Terra’s now-defunct USTC. to your altcoin refers to. An algorithmic dollar-pegged stablecoin formerly known as UST, which crashed sharply in May, is not included in the new Terra network.
The historic collapse of the Terra ecosystem has bankrupted many crypto lenders, including Celsius, Voyager, and Vauld, and has led to Hodlnaut’s current liquidity problems.
Hodlnaut seems to have been badly affected by the crisis created by the Terra crisis.
On August 8, the company froze withdrawals, deposits, and token swaps to “gain time to work closely with legal advisors to create the best possible restructuring and recovery plan for its users.”
Hodlnaut filed an application for interim judicial authority on 13 August to obtain temporary protection against all legal claims. This process also includes forcing the struggling lender to sell any of its Bitcoin and Ethereum holdings at a loss.
Later that month, the company laid off 80% of its staff to save money.
*Not investment advice.
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