Authorities in Singapore have launched an investigation into one Hodlnaut, a local crypto lending and borrowing platform. The police has reason to believe that the company and its directors have been misleading users and have been active in defrauding. The press release following the launch of the investigation reveals that everything started with multiple allegations against the firm for false representations.
The Police had received reports that the firm and its heads had “made false representations relating to the company’s exposure to a certain digital token”. As a result of these the police launched its investigation into the actors and their company for fraud offenses under Sections 417 and 424A of the Penal Code 1871
Once Hodlnaut ceased all activities was the moment when suspicions became reality. The platform had previously lost $189.7 million cause by the Terra collapse, and then it revealed its $13.3 million exposure of the collapsed FTX exchange, that caused a shockwave throughout the crypto industry.
Police in Singapore is currently asking past Hodlnaut customers to report all their invested capital and any suspicious activities they might have seen.
Meanwhile, the Monetary Authority of Singapore (MAS) has increases its regulatory grip around crypto firms, and has proposed additional rules relating to the circulation of stablecoins and retail trading restrictions. A big one is that MAS wants to ban all retail crypto lending services.