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The Commercial Affairs Department have launched an investigation into Hodlnaut Pte. Ltd on Nov. 23.

Suspected of fraud and cheating

The Singapore-based cryptocurrency platform and/ or its directors are suspected of cheating and fraud offences, the Singapore Police Force (SPF) said in its press release on Nov. 23.

SPF said they received multiple reports between August and November 2022 alleging that Hodlnaut and/or its directors had made false representations relating to the company’s exposure to a certain digital token.

Those who have deposited digital tokens with Hodlnaut and believe that they may have been defrauded through, among others, false representations made by Hodlnaut, can lodge a police report at their nearest Neighbourhood Police Centre, or online.

They are recommended to provide documents relating to their transactions with Hodlnaut, such as records of the payments made to and received from Hodlnaut, as well as relevant correspondence with the platform.

Halted withdrawals on Aug. 8

Hodlnaut announced on Aug. 8 that it will be halting all withdrawals, token swaps and deposits with immediate effect due to "recent market conditions".

It stated that the platform has informed the Monetary Authority of Singapore of their intention to withdraw their licence application, adding that it will also cease all borrowing and lending services.

The platform said it is actively working on the recovery plan and that it hopes to provide updates and details on as soon as permissible.

It was previously reported in end-October that Hodlnaut lost nearly US$190 million in the TerraUSD wreck and its directors had downplayed the range of the group's exposure to digital tokens.

Top image from Hodlnaut website