Singapore’s white-collar crime investigation unit, the Business Affairs Division (CAD), on Wednesday, launched a probe into troubled crypto lender Hodlnaut for “doable dishonest and fraud,” based on an official statement.
Between August and November, the police obtained “a number of studies” that Hodlnaut and its administrators had made “false representations” in regards to the lender’s publicity to “a sure digital token.”
The unnamed token seemingly refers to Terra’s now-collapsed USTC, previously often called UST, an algorithmic dollar-pegged stablecoin that quickly depegged again in Might. Decrypt reached out to Singapore’s CAD and Hodlnaut to verify this, however didn’t obtain a right away reply.
The Terra ecosystem’s historic collapse bankrupted a number of crypto lenders—together with Celsius, Voyager, and Vauld—and resulted in Hodlnaut’s present liquidity troubles.
Hodlnaut on the brink
Hodlnaut seems to have been badly affected by the contagion of the Terra disaster.
On August 8, the corporate froze withdrawals, deposits, and token swaps to “give [it] the time to work carefully with [its] authorized advisors to provide you with the absolute best restructuring and restoration plan for [its] customers.”