Singapore authorities hit the former crypto lending boss with six counts of fraud by false representation, alleging he lied about the platform's exposure to the Terra collapse that vaporized $190 million in user funds.
Nearly four years after the Terra ecosystem implosion sent shockwaves through the crypto lending world, Singapore’s legal system is catching up with one of its casualties. Zhu Juntao, the 36-year-old former CEO of crypto lender Hodlnaut, was charged on May 26 with six counts of fraud by false representation.
The charges stem from statements Zhu and Hodlnaut employees allegedly made between May and July 2022, claiming the platform had no direct exposure to TerraUSD (UST) and had therefore avoided losses from its collapse. The reality, according to investigators, was considerably different: roughly $317 million of user funds had been converted into UST and deposited into the Anchor protocol, resulting in approximately $190 million in realized losses.
Singapore Police said Zhu was charged following an investigation by the Commercial Affairs Department. He faces three charges under Section 424A(1)(a) read with Section 424A(3) of the Penal Code 1871, plus three additional charges under the same provision read with Section 109.
The Section 109 charges are notable because they relate to abetment, suggesting prosecutors believe Zhu directed others to spread the misleading statements. Allegations indicate Zhu instructed employees to...
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