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According to Singaporean media, the police of the city-state is checking the activities of the credit service Hodlnaut in response to numerous customer complaints.
The police are reportedly looking into the company's papers andwill interrogate the management of the service. The police suspect Hodlnaut of fraud and deception of users. Most of the complaints indicate that the company provided false reporting and reported false data on investments in certain tokens.
The police called on all those affected by the activities of the service to file a complaint and provide documents on transactions on the platform.
Recall that Hodlnaut suspended
transactions for withdrawal of funds and acceptance of depositsin August, citing liquidity problems. The platform’s problems are related to investments in the UST stablecoin of the collapsed Terra ecosystem, although the management stated that there were no investments in the ecosystem. The company lost $190 million and it looks like management tried to rectify the situation, but failed to do so.