Singapore Starts Fraud Investigation Into Crypto Exchange Hodlnaut
The police are looking into allegations of cheating and fraud by the company and its directors.
Nov 24, 2022 at 6:32 a.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/NLAQNN5WM5GRFDBV23KH3WYMBM.jpg)
(Unsplash)
Singapore police said they have started an investigation into troubled crypto exchange Hodlnaut.
According to a press release, the police are looking into allegations of cheating and fraud by the company and its directors.
The investigation report is the latest blow for the troubled Singapore-based exchange, which was one of the many crypto firms that was hit by the crypto downturn earlier this year.
Earlier this month, the exchange had revealed that it has over SGD 18.3 million ($13.3 million) worth of crypto stuck in the defunct exchange FTX, dealing a further blow to its recovery process.
Hodlnaut had frozen withdrawals in August, after reportedly losing close to $189.7 million due to the collapse of the Terra ecosystem.
Hodlnaut did not immediately respond to CoinDesk's request for comment.
UPDATE (Nov. 24, 11:07 UTC): Updates headline and story with confirmation from Singapore Police.
CORRECTION (Nov. 28, 15:25 UTC): Corrects Hodlnaut name throughout.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
:format(webp)/s3.amazonaws.com/arc-authors/coindesk/400b855f-163f-4b51-b7c2-b848afd72051.png)
Parikshit Mishra is CoinDesk's Deputy Managing Editor responsible for breaking news coverage. He does not have any crypto holdings.
:format(webp)/www.coindesk.com/resizer/fczAGHsWLFXiMV23oZZmkW19Ots=/arc-photo-coindesk/arc2-prod/public/D4HEG34XFVFVJHPXEEJAEFZ3SI.jpg)
Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.