Key Takeaways:
- According to a press release, Singapore police have opened an investigation into the problematic cryptocurrency exchange Holdnaut.
- The police are investigating claims that the company and its directors have engaged in cheating and fraud.
Hodlnaut, a Singapore-based cryptocurrency lender, and its directors are being looked into by the police for possible fraud and cheating offences.
According to the statement, the police are looking into claims that the company and its directors have engaged in cheating and fraud.
The investigation report is the newest setback for the troubled Singapore-based exchange, among the numerous cryptocurrency businesses impacted earlier this year by the market downturn.
The police received numerous reports between August and November of this year claiming that Hodlnaut or its directors had misrepresented the company’s exposure to a particular digital token.
The Commercial Affairs Department is looking into alleged wrongdoings at the cryptocurrency lender.
“You may wish to lodge a police report at the nearest Neighbourhood Police Centre, or online, if you have deposited digital tokens with Hodlnaut and believe that you may have been defrauded through, among other things, false representations made by Hodlnaut,” the police advised.
It is advised that they provide documents of the payments made to and obtained from Hodlnaut, as well as pertinent correspondence with the platform, as proof of their dealings with the company.
The unidentified token probably alludes to Terra’s now-defunct USTC, also known as UST, an algorithmically pegged-to-the-dollar stablecoin that abruptly depegged in May.
When the crypto lender stopped platform withdrawals on August 8 due to a liquidity crisis, this was the first indication that things were not going well. Withdrawals were stopped only a few months after the atrocious crypto contagion in the second quarter, which was caused by the collapse of the Terra ecosystem.
The platform has notified the Monetary Authority of Singapore of its willingness to rescind its licence application, according to the statement, which also added that it would stop offering all borrowing and lending services.
According to the platform, the recovery plan is something it is actively working on, and it hopes to share updates and information about as soon as it is legal to do so.
