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Cryptocurrency lender HodlKnot under investigation by Singapore authorities (report)

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Law enforcement in Singapore has reportedly launched an investigation against troubled crypto lender HodlKnot.

Police suspect that business executives have defrauded users and committed other crimes over the years.

hodlnot took another blow

According to Bloomberg reports, Singapore Police have launched an investigation into HodlKnot for alleged involvement in fraud and deceit. This is the result of multiple reports that the company’s directors have been convicted of making “false statements regarding the company’s exposure to a particular digital token”.

“If you have deposited digital tokens with HodlNotch and believe you may have been scammed through hodlNotch false statements, you may want to file a report at the nearest neighborhood police station or online,” the police said. underlined.

The Singapore-based crypto lender halted withdrawals, deposits and token swaps in August, citing “difficult market conditions”. About a week after suspending services, it laid off nearly 80% of its staff and slashed interest rates.

HodlNotch has applied to the Supreme Court of Singapore for judicial administration in hopes it can “rehabilitate” its company and avoid forced liquidation of its assets:

“The judicial management application provides for moratorium (or temporary cessation) of legal claims and proceedings against HodlNotch. This pause gives us breathing space to focus our efforts on a recovery plan to rehabilitate the business.

The authorities accepted the request and appointed Rajagopalan Seshadri, Paresh Jotangia and Ho May Kee as temporary judicial managers of the company.

Exposure to Terra’s UST

as crypto potato Recently reported, Hodlnaut was one of the victims of the giant Terra crash in May this year. The company lost $190 million because of its exposure to the algorithmic stablecoin UST.

“It appears that the directors overestimated the magnitude of the group’s exposure to Terra/Luna in the period before and after the Terra/Luna collapse in May 2022.”

It seems that the cryptocurrency lender is hiding facts from its users. Bloomberg data showed that some of the company’s employees deleted more than 1,000 “key” documents that could demonstrate the vulnerability.

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Terra’s own token – LUNA – and its stablecoin – UST – plummeted to near zero, causing massive investor panic and a market-wide crisis. Several sources have revealed that some have even committed suicide due to their multi-million dollar losses.

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source: cryptopotato.com

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