Singapore Police Open Investigation Into Hodlnaut

The Singapore Police Force’s Commercial Affairs Department has opened an investigation into the cryptocurrency platform Hodlnaut, reported local media, citing the agency’s press release. 

Authorities clarified that the company and its leadership are suspected of deception and fraud.

Since August, the police have received several reports alleging false statements by the directors and the platform regarding the impact on its operations of “specific digital tokens”.

Authorities urged Hodlnaut’s users who claim to be defrauded to provide documents relating to the platform’s operations and the relevant correspondence.

On August 8, the Singapore-based crypto company suspended withdrawals, swaps and token deposits. Hodlnaut immediately sought court protection from creditors.

The platform also laid off 80% of its staff to cut costs.

The company acknowledged a capital shortfall of $193 million. Of this amount almost $190 million was linked to losses suffered by the platform as a result of the Terra ecosystem collapse.

Earlier, it emerged that Hodlnaut owed $35 million to the Algorand Foundation, a non-profit organization.

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