Singapore Launches Probe Into Crypto Lending Platform Hodlnaut

Singapore Launches Probe Into Crypto Lending Platform Hodlnaut
  • With the collapse of the Terra ecosystem earlier this year, Hodlnaut allegedly lost $190M.
  • Singaporean authorities have tightened their control over the country’s crypto industry.

The newest update is that Singaporean authorities are looking into allegations of fraud and deceit against cryptocurrency lender Hodlnaut Pte. The struggling crypto lender’s operations have been strained along with the rest of the market in this crypto winter. With the collapse of the Terra ecosystem earlier this year, Hodlnaut allegedly lost $190 million.

It was reported on November 23 that the corporation had made “false representations relating to the company’s exposure to a certain digital token.” Which is what prompted the investigation, according to the police. Hodlnaut has been given protection from its creditors after it temporarily suspended withdrawals in August of this year.

Stringent Regulatory Framework Proposed

As was previously mentioned, the breakdown of the Terra ecosystem placed significant strain on the operations of crypto lending platforms like Hodlnaut. Hodlnaut has already verified the existence of “pending proceedings” with law enforcement.

Hodlnaut’s exposure to the crumbling Terra habitat was minimized, according to a report produced by interim judicial administrators appointed by the court last month. Over the last several months, Singaporean authorities have tightened their control over the country’s cryptocurrency industry. When the Terra ecosystem in Singapore collapsed, it sent shockwaves across the cryptocurrency market.

The Monetary Authority of Singapore recommended a regulatory framework last month to protect cryptocurrency traders and investors from potential losses. The MAS has made it illegal for ordinary people to use borrowed money or credit cards to trade cryptocurrencies.

In an interview published on Thursday, Bloomberg spoke with Changpeng Zhao, CEO of Binance, who addressed issues about the spread of FTX, Coinbase’s reserves, a possible industry recovery fund, and more. Following the FTX crypto exchange’s demise, he expects some ripple effects to last for some time.

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A trader himself, Rossi has 7 years of experience trading in the forex market and the passion for writing has brought him to Newscrypto. He is the perfect combination of market knowledge and writing skills, making him one of the most sought-after writers on cryptocurrency.