Singapore police charged former Hodlnaut CEO Zhu Juntao with six fraud counts on May 26, 2025, according to reports from crypto.news. The charges were filed under Section 424A(1)(a) read with Section 424A(3) of Singapore's Penal Code, along with three further charges under the same provisions read with Section 109. Zhu, 36, faces up to 20 years in prison for each charge, along with fines or both penalties if convicted.
The fraud charges relate to statements made after TerraUSD crashed in May 2022, as reported by crypto.news. Police allege that Zhu instigated Hodlnaut employees to make misleading statements in the company's Telegram group and in emails to users between May and July 2022. These statements allegedly claimed that Hodlnaut had no direct exposure to UST and did not suffer losses from the crash. Additionally, Zhu published three similar posts on his personal Twitter account (now X) in June 2022, according to the police investigation. The case concerns claims made in Telegram messages, emails, and Twitter posts, as reported by Whale Alert, and relates to previously reported losses tied to the Terra/Luna fallout.
Hodlnaut allowed users to deposit digital tokens and earn interest, with the platform having more than 30,000 users worldwide before becoming defunct in August 2022, as reported by crypto.news. Previous reports indicated that the platform faced $190 million in UST-linked losses and had approximately $18.5 million parked at FTX. The company applied for judicial management after halting withdrawals in August 2022, seeking court protection during a liquidity crisis.
The case comes during a period of increased scrutiny of cryptocurrency firms in Singapore, according to crypto.news. The Monetary Authority of Singapore recently revoked Bsquared Technology's major payment institution license after finding false or misleading information, weak risk controls, and outsourcing failures. Police have warned the public about risks tied to crypto products and service provider failures, emphasizing the need for proper oversight in the digital asset sector. The charges are expected to have significant market impact and could affect near-term confidence in similar crypto lending risks, though they represent a legal/accountability story rather than a direct market catalyst.
