Hodlnaut Crypto Company Investigated By Singapore Police Over Alleged Fraud. Police are investigating Singapore-based crypto lending firm Hodlnaut and its directors for alleged fraud and fraud offenses.
Between August and November this year, police received multiple reports alleging that Hodlnaut or its directors had made false statements regarding the company’s exposure to certain digital tokens.
The Commercial Affairs Department of Singapore, launched an investigation into the crypto lender for alleged violations.
“If you have deposited digital tokens with Hodlnaut and believe you may have been defrauded through, among other things, false statements made by Hodlnaut, you may wish to file a police report at the nearest Neighborhood Police Center, or online,” police said. from Channel News Asia, Monday (28/11/2022).
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The police added that customers are expected to be able to provide documents related to transactions with Hodlnaut to submit complaints. These documents include records of payments made and received from Hodlnaut and relevant correspondence with Hodlnaut.
Approximately 71.8 percent of the digital assets used by Hodlnaut on centralized exchanges were held with FTX, with an estimated market value of IDR 210.2 billion. Prior to the announcement of FTX’s disbandment, judicial managers temporarily attempted to withdraw assets from FTX but were unable to process them.
In August, Hodlnaut suspended withdrawals, exchanges and deposits. It said it would withdraw its application for a license from the Monetary Authority of Singapore (MAS) to provide digital token payment services, which it had received in-principle approval in March.
That same month they laid off around 40 employees and revealed he was being investigated by Singapore police. Hodlnaut said at the time of the layoffs it was to reduce company expenses.
Earlier, the Monetary Authority of Singapore (MAS) said cryptocurrency exchanges licensed to operate in Singapore must comply with financial sanctions against Russia.
This follows a pro-Russian group that has raised millions of dollars in crypto donations to support Moscow’s war on Ukraine.
In March 2022, following the Russian invasion of Ukraine, MAS introduced financial measures targeted at designated Russian banks, entities and activities in Russia, as well as fundraising activities that benefit the Russian government.
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Hodlnaut Crypto Company Investigated By Singapore Police Over Alleged Fraud. “These measures apply to all financial institutions in Singapore, including digital payment token service providers (DPTSP) licensed to operate in Singapore,” said MAS, quoted from Channel News Asia, Thursday (24/11/2022).
MAS did not say whether it had received reports of exchanges operating in Singapore being used to donate cryptocurrency to pro-Russian groups, but stressed DPTSP should have strong controls in place to avoid dealing with sanctioned banks and prohibited activities.
“For example, DPTSP must conduct customer due diligence to identify and verify the identity of their customers and the customer’s beneficial owners, and screen their customers and transacting partners,” said a MAS spokesperson.
Singapore welcomes the adoption of cryptocurrencies as they play a supporting role in the wider digital asset ecosystem, but has tightened regulations after calling trading in these assets “highly risky”.
In October, MAS proposed that retail investors in Singapore undergo a risk awareness assessment before being allowed to trade cryptocurrencies. They will also not be able to use credit cards or any form of loans to trade cryptocurrencies.
Previously, the Government of El Salvador had created the National Bitcoin Office or National Bitcoin Office (ONBTC) after El Salvador President Nayib Bukele revealed he would buy one bitcoin every day.
The report also stated that the entity was created through decision letter number 49 which was signed by the Minister of Tourism and Economy Bukele. This was stated in the Torres report quoted from Bitcoin.com, Sunday (27/11/2022).
The BitcoinNational Office was established with ‘functional and technical autonomy in the presidency’ on November 25, 2022. This national bitcoin office is to manage all projects related to cryptocurrencies and was established in decree No. 49 by the President of El Salvador Nayib Bukele. Decision number 49 was published in the official gazette of El Salvador which was summarized in article two.
“Article two defines the goals of ONBTC which will design, diagnose, plan, program, coordinate, follow up, measure, analyze, and evaluate plans, programs and projects related to bitcoin for the economic development of the country,” notes the post published by Torres.
“It will also be able to collaborate with other countries if needed, in matters related to bitcoin,”
The creation of ONBTC follows Bukele explaining his country will buy one bitcoin every day. At the time, El Salvador’s bitcoin holdings were around 2,381 BTC, and it had been nine days since Bukele’s announcement meaning the country had acquired another nine bitcoins.
Torres said Bukele would be in charge of appointing a director of ONBTC and a bitcoin supporter, Max Keiser’s wife Stacy Herbert would be involved.
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“Honoured to be involved in setting up bitcoin office for president of Bukele,” Herbert tweeted on November 1, 2022.
In addition, ONBTC has a Twitter account and says a report will be published soon. “The national bitcoin office will publish our first report soon. The topic will be bitcoin mining in El Salvador,”
Hodlnaut Crypto Company Investigated By Singapore Police Over Alleged Fraud. The report also indicates that digital asset billing will help support bitcoin bond issuance plans. The idea of El Salvador’s bitcoin bonds has been put on hold and reports note the bonds may be issued by La Geo company.
The ONBTC office will also organize individual meetings with Bukele regarding bitcoin and blockchain lessons.
“This new agency will work as a special administrative unit with functional and technical autonomy,”
