The Commercial Affairs Department (CAD) of Singapore is investigating a crypto platform that is based in Singapore, “Hodlnaut”, and its’ directors for alleged fraud and cheating.
They are being investigated under Section 417 and 424A of the Penal Code 1871, after the Singapore Police Force received multiple reports against the company, for false representations.
The Business Times reported that the police had received multiple reports against Hodlnaut between August and November this year, alleging that the directors falsely represented their exposure to a digital token.
The police also advised those who deposited digital tokens with Hodlnaut, and who think they have become a victim of fraud, to come forward and make a police report, and provide documents relating to transactions with the firm as it would help them with their investigations.
Hodlnaut previously submitted an application for judicial management back in August following the collapse of Terra-Luna.
They claimed that it would help them with their recovery, and they also wanted to avoid liquidating their assets.
The firm then halted user withdrawals, token swaps and deposits on 8 August, and they said that they told MAS that they wanted to withdraw their application for a Major Payment Institution license, which would enable them to offer crypto services.
They then slashed all their open interest rates to 8$ annually from 22 August in an attempt to stabilise their liquidity, as well as cut costs, according to Coindesk.
Hodlnaut also laid off 80% of their employees to further reduce expenses, and they wrote on their blog that they were working hard on a recovery plan.