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Crypto loanprovider Hodlnaut supposedly dealswith authorities examination in Singapore

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Singapore-based crypto loanprovider Hodlnaut is supposedly dealingwith a cops probe over declared offenses of unfaithful and scams.

According to reports released in regional media, the cops’s business affairs department hasactually released an examination into the creators of the exchange based on several problems versus the platform inbetween August and November2022

The Singapore authorities keptinmind that the bulk of problems revolve around incorrect representations and falseinformation concerning the business’s directexposure to a particular digital token. Police likewise recommended financiers affected by the Hodlnaut crisis to file a grievance online and send proven files of their deal histories on the platform.

Neither the Singapore authorities nor Hodlnaut instantly reacted to Cointelegraph’s demands for remark.

The veryfirst indications of problem for the crypto lendinginstitution came on Aug. 8 when it suspended withdrawals on the platform mentioning a liquidity crisis. The suspension of withdrawals came simply months after the notorious crypto contagion in the 2nd quarter led by the implosion of the Terra community.

At the time, the platform declared they had no directexposure to the now-defunct algorithmic Terra stablecoin now called TerraUSD Classic (USTC). However, on-chain information opposed crypto loanproviders’ declares and recommended they held at least $150 million in USTC.

The on-chain information was lateron validated by a judicial report in October. The report keptinmind that the crypto lendinginstitution lost almost $190 million to the Terra collapse and lateron erased thousands of files associated to their financialinvestments in order to conceal their directexposure.

Related: Crypto loanprovider Hodlnaut looksfor judicial management to prevent required liquidation

Hodlnaut handled to keep its USTC directexposure under covers for nearly 3 months after the collapse of the Terra community however ultimately fell victim to the liquidity crunch requiring it to lookfor judicial management under which a court designated a brand-new interim CEO for the company. Three months down the line, its directors are now dealingwith a cops probe for keeping users in the dark.

In August, the crypto loanprovider had stated it was working on a restructuring strategy with hopes of resuming operations quickly. 

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