The probe is being conducted by the Commercial Affairs Department (CAD). If found guilty, the company could face charges of cheating and fraud.
•The Singapore police have launched a probe into crypto lender Hodlnaut for “possible cheating and fraud.”
• This comes after multiple reports that the company had made false representations about their exposure to a certain digital token.
• The probe is being conducted by the Commercial Affairs Department (CAD).
• If found guilty, the company could face charges of cheating and fraud.
Hodlnaut, a Singapore-based crypto lending platform, is under investigation by the Commercial Affairs Department (CAD) for possible cheating and fraud. The Singapore police have launched a probe into crypto lender Hodlnaut after the company admitted that it had overstated the number of funds it had on hand. Hodlnaut had claimed that it had $26 million worth of digital assets under management when in reality it only had $5 million.
The discrepancy came to light after the company failed to meet a deadline to repay its customers’ deposits. The police are now investigating whether Hodlnaut misrepresented its financial situation in order to attract investors and whether any criminal offenses have been committed. This is not the first time that Hodlnaut has come under scrutiny from authorities; in 2018, the Monetary Authority of Singapore ordered the company to cease operating due to concerns about its business model. If convicted of cheating or fraud, Hodlnaut’s directors could face up to 10 years in prison. The probe is being conducted by the CAD. If found guilty, the company could face charges of cheating and fraud.
What is CAD?
The Commercial Affairs Department (CAD) is a division of the Singapore Police Force that investigates white-collar crimes. It was formed in 1999 and has since become one of the world’s most respected anti-fraud units.
The probe is being headed by Deputy Commissioner of Police Tan Chuan Keong. A team of officers from the CAD, the Economic Crimes Branch, and the Criminal Investigation Department are investigating the case. They have interviewed several witnesses and are looking into possible wrongdoing by the company. The probe is expected to take several months to complete.
What are the implications of this probe?
If Hodlnaut is found guilty of fraud or cheating, it could have serious implications for the crypto lending industry. It could also cause investors to become warier about investing in digital assets and lead to stricter regulations on financial firms operating in Singapore. There is already a lot of negative sentiment towards crypto especially since the fall of FTX recently which brought numerous negative revelations to light about crypto investments and the players involved. This news further adds to the fear and speculation associated with them. It’s important for companies like Hodlnaut to be held accountable if they are found guilty of fraud or cheating so that investors can have confidence in the industry.
It remains to be seen how this case will end but it is sure to lead to some regulatory changes in order to ensure that similar incidents do not occur in the future. It is also possible that other crypto lenders could come under scrutiny as this case unfolds. All eyes are now on Hodlnaut and what the outcome of this investigation will be. Hopefully, it will lead to more stringent regulations and greater investor protection in Singapore’s crypto industry.