Singapore has launched an investigation into crypto lender Hodlnaut to investigate its operations. Singapore’s Chamber of Commerce (CAD) is currently investigating whether Hodlnaut engaged in fraudulent and fraudulent activities. According to law enforcement agencies, between August and November, several reports claimed that Hodlnaut and its directors made ‘false statements’ about the lender’s exposure to a specific digital token. CAD is Singapore’s white-collar crime investigation unit.
The token in question remains unnamed. It report refers to the USTC crypto token developed by Terra that crashed quite severely in early May of this year.
Next The Fall of TerraHoldnaut lost nearly $190 million (approximately Rs 1,550 crore) leaving their account exhausted.
In August, Hodlnaut had to freeze withdrawals from its platform to save its business from shutting down.
Holdnaut, until now, has not responded to the development.
The collapse of the Terra ecosystem — both the UST algorithmic stablecoin and its sister token LUNA — triggered a massive crypto sell-off that led to crypto winter.
Terra’s demise also led to the downfall of crypto lenders poison and Astronautsas well as hedge fund Three Arrows Capital, and opens up further scrutiny of crypto and stablecoin investments from regulators.
Shaktikanta DasGovernor of the Reserve Bank of India (RBI), issued a warning against experimenting in the cryptocurrency sector shortly after Terra collapsed.
“Here [crypto] is something basic of it [value] nothing. There are big questions about how you adjust it. Our position remains very clear, it will seriously undermine India’s monetary, financial and macroeconomic stability,” the governor said at the time.
During the market fluctuations after the fall of Terra and after Cryptocurrency Exchange FTX This month, more than $200 billion (approximately Rs 16,30,000) was wiped off the market, leaving the global cryptocurrency valuation at $828 billion (approximately Rs 67,48,800).