Singapore police have charged the former CEO of crypto lender Hodlnaut, Zhu Juntao, with six counts of fraud by false representation. The charges stem from statements he allegedly made about the company’s financial health after the Terra/UST stablecoin collapse in May 2022.
What the charges allege
According to police, Zhu Juntao misled investors and regulators about the extent of Hodlnaut's exposure to the Terra ecosystem. The company had lent heavily to the failed project, and when TerraUSD and its sister token Luna cratered, Hodlnaut was left with billions of dollars in bad debt. Zhu is accused of downplaying that damage in communications to users and authorities, painting a rosier picture than reality.
Each count of fraud by false representation carries a potential prison sentence of up to 10 years under Singapore's Penal Code. Zhu has not yet entered a plea; his lawyer did not respond to requests for comment.
The Terra blowup that led here
Terra's collapse in May 2022 wiped out roughly $60 billion in market value within days. Hodlnaut was among the many crypto lenders that had parked customer deposits with Terra's Anchor Protocol, which offered sky-high yields. When the stablecoin depegged, the loans went bad. Hodlnaut froze withdrawals in August 2022 and later filed for creditor protection in Singapore.
Investigators zeroed in on statements Zhu made after the crash. In public posts and internal memos, he assured users that Hodlnaut's exposure was “manageable” and that the firm had sufficient reserves. The charges say those claims were false.
The case is now before Singapore’s State Courts.
