Hodlnaut Crypto Lender Under Scanner in Singapore, being investigated for fraud

Singapore has launched an investigation into crypto lender Hodlnaut to investigate its operations. Singapore’s Department of Commercial Affairs (CAD) is now examining whether Hodlnaut is engaging in fraud and fraudulent activities. According to law enforcement, between August and November, several reports alleged that Hodlnaut and its managers had made “false claims” about the lender’s exposure to a particular digital token. CAD is the White Collar Crime Investigation Unit in Singapore.

The symbol in question remains unnamed. He. She It said It refers to the Terra-developed USTC crypto token that crashed dramatically earlier this year in May.

next Terra collapseHoldnaut lost nearly $190 million (roughly Rs. 1,550 crores) leaving its accounts high and dry.

In August, Hodlnaut had to freeze withdrawals from its platform to save its business from closing.

Holdnaut, to date, has not interacted with the development.

The collapse of the Terra ecosystem – both the algorithmic stablecoin UST and sister token LUNA – triggered a massive crypto sell-off resulting in encryption winter.

Terra’s collapse also led to high-profile collapses of cryptocurrency lenders Celsius And the Voyageras well as hedge fund Three Arrows Capital, and led to increased scrutiny of investing in cryptocurrencies and stablecoins from regulators.

Shaktikanta Dasthe Governor of the Reserve Bank of India (RBI), had issued warnings against experimentation in the crypto sector shortly after the Terra crash.

“this is [crypto] is the thing that [value] no thing. There are big questions about how they are organized. Our position remains very clear, and it will seriously undermine India’s monetary, financial and macroeconomic stability,” the governor said at the time.

In the market movements that followed the collapse of Terra then FTX crypto exchange This month, more than $200 billion (roughly Rs. 1,630,000 crores) was wiped from the market, leaving the global cryptocurrency valuation currently at $828 billion (roughly Rs. 67,48,800 crores).

Many crypto companies including Lemon CashAnd the origin And the fould They had to lay off their employees to maintain their own business.