Crypto Boss’s Terra Fibs: 6 Fraud Charges That’ll Make You Chuckle!

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In a development that would cause even Psmith to pause mid-sentence, the Singapore constabulary has charged one Zhu Juntao, late of Hodlnaut, with six counts of fraud by false representation-a rather Arthurian scale of mischief, one might say.

  • The long arm of the law has tapped Mr. Zhu on the shoulder over alleged fibs concerning UST, that most unstable of stablecoins.
  • Police suggest he encouraged underlings to spout nonsense about Hodlnaut having no UST exposure post-Terra’s 2022 tumble, which is about as truthful as saying the moon is made of cheese.
  • Previous rumblings indicated Hodlnaut misplaced a cool $190 million in the UST debacle, plus a tidy sum at FTX-a financial piñata, really.

The Commercial Affairs Department, ever vigilant, led the probe into the now-defunct crypto lender, which had more users than a seaside pier on a sunny day.

Mr. Zhu, 36, faces three charges under Section 424A(1)(a) read with Section 424A(3) of Singapore’s Penal Code, plus three more under the same provisions read with Section 109-a legal trifle that sounds like a line from a Gilbert and Sullivan operetta.

TerraUSD claims sit at the center of the case

The brouhaha centers on statements made after TerraUSD did its famous impersonation of a lead balloon in May 2022. Mr. Zhu allegedly nudged Hodlnaut employees to disseminate “misleading statements” via Telegram and email, claiming the firm was as pure as the driven snow when it came to UST losses-a tale worthy of Baron Munchausen.

He also published three similar whoppers on his personal Twitter account, now X, in June 2022, proving that some habits are harder to break than a stuck elevator.

Hodlnaut’s 2022 collapse returns to focus

Hodlnaut, for the uninitiated, was a crypto lender where folks deposited digital tokens and hoped for interest, much like banking but with more volatility and less tea. It boasted over 30,000 users worldwide before folding in August 2022, brought low by financial difficulties that would make a gambler blush.

As previously noted, Singapore police have been sniffing around since 2022 over fraud claims tied to Terra/Luna. Sources whispered that Hodlnaut lost nearly $190 million in the UST meltdown and had about $18.5 million lounging at FTX-a bit like leaving your wallet in a taxi, really.

The lender’s woes reached Singapore’s courts in August 2022 when it applied for judicial management after freezing withdrawals, seeking protection while it navigated a liquidity crisis that made a game of musical chairs look orderly.

Judicial management offered temporary shelter from creditors, arriving amidst a wider crypto lending panic after Terra’s collapse, which sent several firms into a tizzy faster than you can say “market correction.”

Singapore keeps pressure on crypto firms

If convicted, Mr. Zhu faces up to 20 years in prison, a fine, or both per charge-a fate that might make even Jeeves raise a disapproving eyebrow. Police also cautioned the public about the perils of crypto products and service provider failures, which is rather like warning someone that fire is hot.

This unfolds as Singapore tightens its grip on crypto, having recently revoked Bsquared Technology’s license over false information and weak controls-a regulatory stance that suggests the authorities are done with funny business.

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2026-05-26 13:59