CAD launches probe into crypto platform Hodlnaut, directors
THE Commercial Affairs Department (CAD) on Wednesday (Nov 23) announced that it has launched an investigation into distressed crypto platform Hodlnaut and its directors for possible cheating and fraud offences.
In a press statement, the Singapore Police Force (SPF) said the police received multiple reports between August and November, alleging that Hodlnaut and its directors had made false representations relating to the company’s exposure to a certain digital token.
The CAD is now investigating the company and its directors for possible offences under Sections 417 and 424A of the Penal Code 1871, SPF said.
SPF is also calling for those who have deposited digital tokens with Hodlnaut and believe that they have been defrauded through, among others, false representations made by Hodlnaut, to lodge a police report.
It said any documents relating to the transactions with Hodlnaut – including records of the payments made to and received from Hodlnaut as well as relevant correspondence with the platform – would help the police assist people with the review of their complaints.
Back in August, Hodlnaut applied to the Singapore High Court to be placed under judicial management following the Terra-Luna collapse. The company claimed that undergoing judicial management would give it the best chance of recovery.
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The company said then that it is aiming to avoid a forced liquidation of its assets, which would require it to sell users’ cryptocurrencies at depressed prices.
Hodlnaut on Aug 8 halted user withdrawals, token swaps and deposits. It said it has informed the Monetary Authority of Singapore that it intends to withdraw its application for a Major Payment Institution licence which allows companies to offer crypto services.
In an effort to stem cash burn, Hodlnaut said it would change all open interest rates to 0 per cent annual percentage rate from Aug 22. The company has also laid off 80 per cent or about 40 employees to reduce expenses, with only key functions retained.
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