The commercial affairs department, the Singapore police force’s white-collar crime division, said it has launched an investigation into embattled crypto firm Hodlnaut over claims of cheating and fraud, Mothership reported.
The law enforcement body said that it had received multiple complaints between August and November outlining how Hodlnaut and its directors allegedly falsified the extent to which the firm was exposed to a digital token – presumably UST.
This investigation will be conducted under sections 417 (non-aggravated cheating) and 424A (fraud by false representation) of the penal code 1871. The minimal penalty under 417 is “imprisonment for a period of up to 3 years and a fine, or either,” while those charged guilty under 424A could face up to 20 years in prison, a fine, or both.
Prior to this, a Hodlnaut moderator on the firm’s Discord server allegedly sent a message that said the firm had zero exposure to the Terra stablecoin collapse. However, the company admitted later that US$300 million had been exposed during the ordeal.
See also: Hodlnaut assets hit by FTX debacle
Editing by Samreen Ahmad
(And yes, we’re serious about ethics and transparency. More information here.)
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