Another crypto lender, now primarily based out of Singapore, is in main bother. As per the most recent improvement, Singapore Police is now investigating crypto lender Hodlnaut Pte on fees of fraud and dishonest.
Alike different gamers out there, the beleaguered crypto lender’s operations have come below stress this crypto winter. Hodlnaut has reportedly misplaced $190 million with the crash of the Terra ecosystem earlier this yr.
The police mentioned that the probe began on Wednesday, November 23, with a number of studies alleging “false representations relating to the company’s exposure to a certain digital token”. Hodlnaut halted withdrawals on its platform earlier this yr in August and has obtained safety from the collectors.
As mentioned, Hodlnaut is amongst these crypto lenders which confronted main stress in its operations after the collapse of the TerraUSD ecosystem. Previously, Hodlnaut confirmed that there are “pending proceedings” with the police.
The courtroom has appointed interim judicial managers for Hodlnaut who revealed a report final month stating that the agency had downplayed its publicity to the collapsed Terra ecosystem.
Tighter Regulatory Rules In Singapore
Singapore regulators have been tightening their grip on the nation’s crypto sector just lately. This occurred with the implosion of the Singapore-based Terra ecosystem which unfold like a contagion throughout the crypto area.
Last month, the Monetary Authority of Singapore proposed a regulatory framework for decreasing buyers’ threat in crypto buying and selling. The MAS bans retail buyers from utilizing bank cards and borrowing funds for crypto buying and selling.
As Singapore tries to float away from its crypto-friendly standing, Hong Kong appears to seize this chance. As per studies, Hong Kong is more likely to resume crypto buying and selling within the nation. Amid the shifting dynamics of Asia’s crypto business, Hong Kong would possibly take away some enterprise from Singapore.
However, MAS chief Ravi Menon has made it clear noting:
“We don’t set ourselves out to compete with other jurisdictions, especially on regulation. We have to do what is right for us, what is necessary to contain the risks. And the risks are primarily harm to retail investors.”
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