en
Back to the list

Singapore Initiated Fraud Investigation into This Crypto Lender

Legal

www.thecoinrepublic.com 25 November 2022 04:57, UTC
  
Reading time: ~2 m

According to the reports, the Commercial Affairs Department began the investigation into Hodlnaut Pte. Ltd on November 23, 2022.

Hodlnaut, a Singapore-based crypto lender, and/or its Directors are reportedly suspected of cheating and fraud offences. The following statement is recorded from the press release on November 23, 2022 from Singapore Police Force (SPF.)

SBF Probing Hodlnaut

SPF described that it has received multiple reports in between August and November of this year. The reports alleges that Hodlnaut and/or its Directors had made fake representations related to the company’s exposure to a certain digital token.

Additionally, SBF requested that those who have already deposited digital tokens with the crypto lender and think that it may have been defrauded through, among others, false representations made by the crypto lender, are free to lodge a police report at their nearest Police Centre, or online.

As a part of the investigation, people were required to provide documents related to their transactions with Hodlnaut. It may be records of their payments made to or received from the crypto lender or any other relevant correspondence with Hodlnaut.

On August 08, 2022,Hodlnaut announced that it will be halting all withdrawals, token swaps and deposits with immediate effect due to “recent market conditions.”

In addition, the crypto lender added that it has informed the Monetary Authority of Singapore of their intention to withdraw its licence application, adding that it will also cease all borrowing and lending services.

On the other hand, the crypto lender added that it is actively working on the recovery plan and that it hopes to provide updates and details shortly as permissible.

In continuation, at the end of October 2022, as per the report, Hodlnaut lost around US$190 Million in the TerraUSD crash and its directors had downplayed the range of the group’s exposure to digital tokens.

Crypto Frauds

It must be noted that there are total eight types of crypto frauds that includes, Financial Crimes, Fraud Initial Coin Offerings, Pump and Dump Schemes, Market Manipulation, Ponzi Schemes, Traditional Theft, Broker/Dealer Fraud, and Regulation of Cryptocurrency.

There were some of the biggest crypto frauds that attracted the attention of everyone this year. As in the beginning of this year, in February 2022: Ukraine rug pulls donors (a rare “good” fraud), then in March 2022: Axie infinity Hacked, ~$615 Million Stolen, BBC tricked into promoting alleged crypto fraud, or Seth Green’s stolen Bored Ape.


   Source
Back to the list